Section A

Which Latin term describes the part of a judicial decision that forms the binding precedent?

Answer options:

Obiter dicta

Stare decisis

Ratio decidendi

Res judicata

How to approach this question

Identify the Latin term for the legal reasoning that binds future courts.

Full Answer

C.Ratio decidendi✓ Correct

Ratio decidendi is the legal principle or rule upon which a court's decision is based. It is the only part of a judgment that establishes a binding precedent.

Common mistakes

Confusing ratio decidendi with obiter dicta (persuasive comments).

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Practice the full ACCA LW — Corporate and Business Law Practice Exam 5

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