Courts enclosing American land (7)
I believe the answer is:
austria
'land' is the definition.
(Austria is an example)
'courts enclosing american' is the wordplay.
'courts' becomes 'atria' (atrium is a kind of court).
'enclosing' means one lot of letters goes inside another.
'american' becomes 'us'.
'atria' placed around 'us' is 'AUSTRIA'.
(Other definitions for austria that I've seen before include "One state" , "Central European republic" , "Its ruling house was the Hapsburgs" , "EU country" , "Mountainous European state" .)