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Rohit, a trader, believes that the Sale of Goods Act, 1930 can be changed only by Parliament passing an amending Act, while the rules for how its provisions are enforced in courts come from the judiciary. Which statement about how law develops in this area is correct?

Judicial precedents are an important source of law alongside statutes. Courts interpret the Sale of Goods Act, and the Supreme Court's decisions bind all courts in India, while Parliament alone amends the Act itself. Judicial decisions are therefore not irrelevant or merely advisory.

  1. ABesides statute, judicial precedents of the Supreme Court and High Courts interpret the Act, and the Supreme Court's rulings are binding on all courts in IndiaCorrect
  2. BJudicial decisions have no role, as only statutes are a source of law
  3. COnly High Court decisions are binding, and Supreme Court decisions are merely advisory
  4. DCustoms and decisions are the only sources, as the Act cannot be amended

Explanation

Statutes such as the Sale of Goods Act are amended by Parliament, but courts interpret them and their precedents form another source of law. Supreme Court judgments are binding on all courts in India. Saying judicial decisions have no role or are merely advisory is wrong.

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