Ratio Decidendi is a Latin term that translates to "the reason for the decision". In legal terminology, it refers to the principle or rule of law on which a court's decision is founded. This principle is binding in nature and forms the legal precedent for future cases with similar facts or legal issues.
When a court delivers a judgment, it includes a range of observations, interpretations, and conclusions. Among these, only the Ratio Decidendi is considered binding on lower courts under the doctrine of precedent (also known as *stare decisis*). Other parts of the judgment, such as comments or examples not essential to the decision, are referred to as *obiter dicta*, which are persuasive but not binding.
Importance of Ratio Decidendi:
- It ensures consistency and predictability in the application of law.
- It provides guidance to judges in future cases.
- It serves as the core legal reasoning that must be followed by subordinate courts.
Illustration:
If a court rules that "a contract made under coercion is void," and this forms the basis of its final judgment, then this rule becomes the Ratio Decidendi of the case. Any future case involving contracts made under coercion will be guided by this principle.
Conclusion:
The correct answer is The principle based on which the Court reaches a decision. It is the binding part of a judicial ruling and a key concept in common law jurisprudence.