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A dispute arises over a contract between two businesses in Jaipur. The Indian Contract Act, 1872 does not specifically deal with one point in the dispute. A court decides it by relying on earlier judgments of the Supreme Court on the same point. Which source of law is the court mainly using?

The court is using judicial precedent. When a statute is silent on a point, courts follow earlier decisions of higher courts, and the law declared by the Supreme Court binds all courts in India. Delegated legislation, ordinances and regulator directions are rule-making by the executive, not judgments.

  1. ADelegated legislation
  2. BJudicial precedentCorrect
  3. CAn ordinance
  4. DA regulator's directions

Explanation

Following earlier decisions of higher courts is reliance on judicial precedent, which is a source of law in India. Under the Constitution, the law declared by the Supreme Court is binding on all courts in India. Delegated legislation and ordinances are written rules made by the executive, and a regulator's directions are not court decisions.

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