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ACCA Applied Skills · Corporate and Business Law (Global) · International trade, international legal regulation and conflict of laws

Kestria, a civil law country, has a comprehensive written commercial code. A dispute arises over a supply contract, and the party relying on a decision from an earlier similar case argues the court must follow it. Which statement best describes the position in a typical civil law system?

In a typical civil law system the written code is the primary source of law, and earlier court decisions are persuasive rather than strictly binding. Strict binding precedent, known as stare decisis, is characteristic of common law systems, so the claim that the court must follow the earlier case fails.

  1. AThe code is the primary source, and earlier decisions are persuasive but not strictly bindingCorrect
  2. BEarlier decisions of higher courts are strictly binding on lower courts
  3. CJudges create the law through precedent, and the code is only a guide
  4. DCustom always overrides the written code

Explanation

Civil law systems treat codified legislation as the primary source, with judges applying the code to the facts. Case decisions may be persuasive but there is no strict doctrine of binding precedent. Strict stare decisis is a feature of common law systems, which is the key error in the second option.

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