ley aplicable
Definition
Ley aplicable is a Spanish legal phrase meaning 'applicable law' or 'governing law,' which refers to the specific set of laws that a court will use to resolve a dispute. When you sign a contract, this clause tells everyone involved which state's or country's laws will control how the agreement is interpreted and enforced. It matters because laws vary significantly from place to place, and the choice can greatly affect the outcome of a legal disagreement.
Example
If your business is in Texas but you sign a contract with a vendor in California that says 'ley aplicable: California,' then California law will govern any dispute that arises from that contract, even if you never set foot there.
Watch Out
Always read the governing law clause before signing any contract, because agreeing to laws from a distant state or foreign country can make it expensive and complicated to defend your rights.
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.