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ACCA Applied Skills · Corporate and Business Law (Global) · Business, political and legal systems

In deciding a case, a judge states that the defendant owed no duty because of a specific legal principle, and also remarks in passing what the result might have been had the facts been different. How are these two statements classified?

The legal principle needed to decide the case is the ratio decidendi, which is binding. The passing comment about hypothetical different facts is obiter dicta, which is not binding on later courts, although it may be persuasive.

  1. ABoth are ratio decidendi and binding
  2. BThe principle is the ratio decidendi and the passing remark is obiter dictaCorrect
  3. CThe principle is obiter dicta and the passing remark is the ratio decidendi

Explanation

The ratio decidendi is the legal reasoning necessary to reach the decision and forms binding precedent. Remarks about hypothetical facts are obiter dicta, which are not binding but may be persuasive.

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