CIMA BA4 · Chapter 9 · Question 3 of 10
Under English law, which part of a judgment creates a binding precedent for lower courts?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) The ratio decidendi
Explanation
The ratio decidendi is the legal reasoning necessary for the decision and is binding on lower courts in later cases with similar material facts. Obiter dicta are things said by the way and are only persuasive. Dissenting judgments and headnotes are not binding.
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