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

Which of the following best describes a 'custom' as a source of law?

A custom is a long-established practice followed by a community or trade that people regard as binding and that courts recognise and enforce. It differs from legislation, which is made by a lawmaking body, and from private contract terms, which bind only the parties to them.

  1. AA rule enacted by Parliament and published in the Gazette
  2. BA long-established practice followed by a community or trade, which people regard as binding and which the courts recogniseCorrect
  3. CA temporary arrangement agreed between two parties in a single contract
  4. DAn opinion given by a law professor in a textbook

Explanation

Custom is a practice that has been followed continuously over a long time and is felt by people to be obligatory; courts enforce it as law when proved. A parliamentary enactment is legislation, not custom. A one-time contract term binds only the parties, and a professor's opinion has only persuasive value.

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