Skip to content

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

A local trading community in a market town has for generations followed a practice that goods sold in the grain market are weighed with a deduction of 1 kg per quintal as wastage. A buyer challenges it, saying no statute allows this deduction. Under the rules on custom as a source of law, the practice will be enforced if it is:

The practice will be enforced if it is reasonable, certain, long-established and not contrary to any statute or public policy. Custom is an independent source of law, so lack of a statute permitting it does not defeat it, and neither majority approval nor nationwide practice is required.

  1. AReasonable, certain and not opposed to any statute or public policyCorrect
  2. BApproved by a majority of the buyers in that market
  3. CMentioned in a High Court judgment from another State
  4. DFollowed by at least one trader in each Indian State

Explanation

Courts enforce a local custom if it is ancient, continuous, certain and reasonable, and does not conflict with statute law or public policy. Absence of a statute permitting it is not a bar, because custom operates as a separate source. Majority approval or nationwide practice is not the test.

Did you get it right without looking?

One question tells you little. A timed set on Sources of Law shows your real accuracy, how long you take and where you lose marks.

Practise Sources of LawFree diagnostic mock

More Sources of Law questions