CMA Foundation · Fundamentals of Business Laws and Business Communication · Primary and Subordinate Legislation
Which of the following is treated as a source of law because courts follow the principles laid down in earlier decisions on similar facts?
Judicial precedent is the source of law under which courts follow principles laid down in earlier decisions on similar facts. In India, the law declared by the Supreme Court is binding on all courts, which gives precedent real legal force.
- AJudicial precedentCorrect
- BStatutory rules
- CExecutive order
- DPreamble
Explanation
Judicial precedent means that principles decided by higher courts guide later cases with similar facts. Under Article 141, the law declared by the Supreme Court binds all courts in India. Statutory rules and executive orders are made by the legislature or executive, not by courts.
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