This Practice Note considers applicable law clauses also known as governing law clauses, proper law clauses or choice of law clauses. It considers the rationale for agreeing an applicable law clause, as well as factors to take into account. It also provides an insight into situations in which parties may change the applicable law clause in their contract as well as whether floating applicable law clauses and stabilisation clauses (specific types of clauses) are valid. For an introduction to applicable law, see Practice Note: Applicable law—a guide for dispute resolution practitioners. Contracts may provide for a combined jurisdiction and applicable law clause. For guidance on jurisdiction clauses, see Practice Note: Jurisdiction agreements—introduction. What is an applicable law clause? An applicable law clause records the parties agreement, made during contract negotiations, as to which country’s laws are to be applied by the courts if a dispute arises between the parties to the contract and the proceedings are commenced requiring the courts to make a determination. The applicable law clause should provide for a national system of law to be applied