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CMA Foundation · Fundamentals of Business Laws and Business Communication · Sources of Law

A High Court holds that a long-standing local practice in a district allowing a landlord to demand an extra levy from tenants is a binding custom. On appeal, which reasoning would most correctly lead the appellate court to reject it as a source of law?

The appellate court would reject it because the practice is unreasonable and against public policy, and such a custom is invalid however old it is. Custom need not be enacted or written, and a local custom limited to one district can still be valid if it meets the tests.

  1. AThe practice is unreasonable and opposed to public policy, so it cannot be a valid custom despite its ageCorrect
  2. BThe practice has not been enacted as a Central Act
  3. CThe practice is followed only in one district and so is a local custom
  4. DThe practice was not written down before the first Constitution was adopted

Explanation

Age alone does not make a custom valid; it must also be reasonable and not opposed to public policy or statute. A local custom is recognised, so being limited to one district is no ground for rejection. Enactment or writing is not required for custom.

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