A more thorough explanation:

Transnational law refers to a combination of common principles from both domestic and international law. It deals with issues that arise from agreements made between foreign private parties and sovereign states.

For example, if a company from one country enters into a contract with a company from another country, transnational law would apply to any legal disputes that may arise from that agreement. Another example would be a multinational corporation operating in multiple countries and having to navigate different legal systems and regulations.

Transnational law is important because it helps to provide a framework for resolving legal disputes that cross international borders. It also helps to ensure that agreements between different countries and private parties are fair and equitable.