| Literal meaning | The reason for the decision |
|---|---|
| Pronunciation | RAH-tee-oh dih-sih-DEN-dye |
The legal principle on which a court decides a case. Only the ratio binds later courts.
A court holds that a manufacturer owes a duty of care to the final consumer. That principle is the ratio of the case.
Article 141 of the Constitution of India makes the law declared by the Supreme Court binding.
| Basis | Ratio decidendi | Obiter dicta |
|---|---|---|
| Meaning | The reason for the decision | A remark made in passing |
| Binding? | Yes, on lower courts | No, only persuasive |
| Needed for the decision? | Yes | No |
Asked as 'ratio decidendi vs obiter dicta'. Quote Quinn v. Leathem.
Ratio = reason that decides.
Only the reason for the decision binds later courts.