Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Applicable law definition

What does Applicable law mean? Applicable law describes the body of law that actually governs a dispute, transaction or issue in practice—either because the parties have made a valid governing law (choice‑of‑law) clause, or, absent such a clause, because conflict‑of‑laws rules select it. The term is descriptive rather than a defined statutory label and is used across contracts, tort/delict, property and regulatory compliance. In England & Wales, Scotland and Northern Ireland, if no valid choice is made, the applicable law of contractual obligations is identified under Rome I as retained EU law; for non‑contractual obligations, Rome II as retained EU law applies. In...

Contract governing law at common law: when it applies, express/implied choice and closest connection (England and Wales)

Published by a LexisNexis Dispute Resolution expert

Practice notes

This Practice Note closely examines when the Common law of England and Wales is used to identify the Law governing contractual claims. It explains, in outline, the steps by which the courts in England and Wales deploy the common law to decide which system of national law ultimately applies to the matters in contention between the parties. For a broad, initial overview of key considerations commonly arising when selecting the Applicable law, see Practice Note: Applicable law—a guide for dispute resolution practitioners. For guidance on determining the applicable law of an arbitration agreement, see Practice Note: Law of the arbitration agreement (England and Wales).

Why is the applicable law important?

When resolving a contractual dispute, it is essential to identify the substantive law of the relevant country that the court will apply to resolve the dispute. That law is often described as the applicable law, governing law, or proper law. The justification for deciding disputes by reference to the applicable substantive law was articulated by Lord Diplock in Amin Rasheed v Kuwait Insurance, who observed that contracts cannot exist in a legal vacuum...

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Web page updated on 21/05/2026

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