Answer
Two of the important faculties with language are speaking and the ability to understand the spoken or written word. Areas of the cerebral cortex that are associated with these functions are Wernicke's area for the understanding/recognition of spoken and written language and Broca's area with the production of speech.
Wernicke's area. This area is located posterior to the lateral sulcus --in both hemispheres--at the visual , auditory and somatosensory cortex. It receives inputs from all of these.
Broca's area lies in the inferior prefrontal cortex in each hemisphere.
Work Step by Step
Functions. When we are about to speak Wernicke's area devises the appropriate phrases according to rules of grammar, and forwards the speech plan to Broca's area. Broca's area develops a related plan of muscular movements essential for speech (or signing)-- it generates a motor plan for necessary movements of muscles of larynx,tongue cheeks and lips. It then sends this program to the primary motor cortex which transmits commands to the lower motor neurons that command the actions of the muscles involved.