applicable law
Definition
Applicable law refers to the specific set of laws and regulations that actually govern your situation, contract, or dispute. Because laws vary by city, state, and country, applicable law identifies which location's rules apply when something goes wrong or a disagreement arises.
Example
If you run an online store in Texas but sell to a customer in California, your contract might specify that Texas law is the applicable law, meaning a Texas court would handle any disputes using Texas rules.
Watch Out
Always check the applicable law clause in any contract you sign, because agreeing to another state's laws could force you to hire an out-of-state lawyer and travel far from home to resolve a dispute.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.