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"In the event of a dispute between a Member of the League and a State which is not a Member of the League, or between States not Members of the League, the State or States not Members of the League shall be invited to accept the obligations of membership in the League for the purposes of such dispute, upon such conditions as the Council may deem just. If such invitation is accepted, the provisions of Articles 12 to 16 inclusive shall be applied with such modifications as may be deemed necessary by the Council.

Upon such invitation being given the Council shall immediately institute an inquiry into the circumstances of the dispute and recommend such action as may seem best and most effectual in the circumstances.

If a State so invited shall refuse to accept the obligations of membership in the League for the purposes of such dispute, and shall resort to war against a Member of the League, the provisions of Article 16 shall be applicable as against the State taking such action.

If both parties to the dispute when so invited refuse to accept the obligations of membership in the League for the purposes of such dispute, the Council may take such measures and make such recommendations as will prevent hostilities and will result in the settlement of the dispute."

To summarize, if a conflict between countries not part of the league takes place, those two countries will be invited to the league to settle their disputes with the help of the council and other league members acting according to the rules put in place to settle disputes. if these rules broken after the country joins the league it will be considered as an act of war towards the entire league and so all personal, trade and financial connections between league members and the country in question will be cut off. if the countries decline the invitation the existing league members and the council will meet to decide how to best minimize the damage caused by the conflict.

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"Any war or threat of war, whether immediately affecting any of the Members of the League or not, is hereby declared a matter of concern to the whole League, and the League shall take any action that may be deemed wise and effectual to safeguard the peace of nations. In case any such emergency should arise the Secretary General shall on the request of any Member of the League forthwith summon a meeting of the Council."

In simple terms, if any League member is under threat of war it is a problem for the whole league and the council will immediately be called to a meeting in order to decide how they will move forward.

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"The Members of the League undertake to respect and preserve as against external aggression the territorial integrity and existing political independence of all Members of the League. In case of any such aggression or in case of any threat or danger of such aggression the Council shall advise upon the means by which this obligation shall be fulfilled."

This means that if there was ever to be aggression towards the league members when territory is concerned, the council will advise one what to do.

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"Except where otherwise expressly provided in this Covenant or by the terms of the present Treaty, decisions at any meeting of the Assembly or of the Council shall require the agreement of all the Members of the League represented at the meeting.

All matters of procedure at meetings of the Assembly or of the Council, including the appointment of Committees to investigate particular matters, shall be regulated by the Assembly or by the Council and may be decided by a majority of the Members of the League represented at the meeting."

This means that all decisions have to be agreed upon by all members of the council or the assembly in order to be put into action. But all matters of procedure  such as establishing committees can be agreed upon by the majority.

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"The action of the League under this Covenant shall be effected through the instrumentality of an Assembly and of a Council, with a permanent Secretariat."

Basically, not only will decisions be made by the council and by assembly of the league, but there will also be a permanent secretariat who represented civil service and was the only direct producer of archives and reports from league meetings.

The council were the permanent four founding members (France, Britain Italy and Japan), other countries would be elected by a general assembly every three years.

We can see here a flaw of the league, where there is a council with higher power over the others...

Fun fact, the USA never officially joined the league (Wilson was the chairing the committee but America voted against joining) . Some historians actually say that this contributed to the league falling apart.  5 points on star, 4 +1 on the council.