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governing law

noun · anwendbares Recht

Anwendbares Recht, and the object of the choice is a Rechtsordnung, not its statutes. Governed by the laws of England reads unterliegt englischem Recht, never den Gesetzen Englands, a legal order includes its case law, and the Gesetze version quietly shrinks it.

Which translation, when

anwendbares Rechtthe heading and the concept, which legal order governs the contract. The choice itself is framed by Art. 3 Rom I-VO, free choice of law, expressly made or clearly demonstrated.
Rechtswahlthe act of choosing and the name of the clause, eine Rechtswahlklausel, die getroffene Rechtswahl. The word for the mechanism where anwendbares Recht names the result.

Why

A choice-of-law clause picks a legal order, everything in it, statutes, case law, the rules that never made it into a code, and German usage keeps that width, man wählt deutsches Recht oder englisches Recht, the framework is Art. 3 Abs. 1 Rom I-VO. The laws of England, the English drafting plural, is a stylistic habit, not a list of Acts, so its German counterpart is englisches Recht, and a translation that says die Gesetze Englands has narrowed the choice to legislation in a legal order built famously on judge-made law. One more width problem hides on the German side: deutsches Recht includes the UN Sales Convention for cross-border sales of goods, Art. 1 CISG, so a choice of German law that stays silent selects the Convention along with the BGB, exclusion runs through Art. 6 CISG, and the English reader, whose own jurisdiction never ratified it, rarely sees this coming.

Typical mistakes

  • Die Gesetze Englands for the laws of England reads as statutes only, English law lives in its judgments, the German for the drafting plural is englisches Recht.
  • Geltendes Recht as a heading names the law in force, not the law chosen, German drafting titles the clause anwendbares Recht or Rechtswahl.
  • A choice of deutsches Recht brings the CISG with it for international sales of goods, Art. 1 CISG, silence keeps it, exclusion needs words, Art. 6 CISG.

What matters

Boilerplate at the very end of the contract, one line, this Agreement is governed by the laws of Germany: the working German version is dieser Vertrag unterliegt deutschem Recht, and for a cross-border sale of goods the next sentence should say whether the CISG is excluded. The Gesetze version will still be construed as a Rechtswahl, but it announces that nobody who knew German law read the text.

Authority

  1. Art. 3 Abs. 1 Verordnung (EG) Nr. 593/2008 (Rom I-VO)
  2. Art. 1 CISG
  3. Art. 6 CISG

What the machine misses

Feed a governing law clause to an engine and the laws of England comes back as die Gesetze Englands, the drafting plural translated word for word. German legal usage never counts statutes here, it names the legal order, englisches Recht, and the machine version reads to a German lawyer like the work of someone who has never seen a Rechtswahlklausel.

Examples

governed by the laws of Germanyunterliegt deutschem Recht
the governing law of this agreementdas auf diesen Vertrag anwendbare Recht
choice of lawdie Rechtswahl
under English lawnach englischem Recht
Checked 11 Jul 2026 cengolio.co.uk/notes/governing-law