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Chapter 1

Ratio decidendi and obiter dicta

The ratio decidendi is the legal reason for the decision. It is capable of forming the
binding precedent. It is a statement of law which is carried down to later decisions.

Obiter dicta are statements which are not part of the ratio, they are other statements
made by the judges such as hypothetical situations or wide legal principles. They are
persuasive rather than binding. This means that the judge can take the statement
into account (and usually will) when reaching his decision, but he does not have to
follow it.

Facts of the case

In order for a precedent to be binding on a judge in a later case, the material facts of
the two cases must be the same. If they are significantly different, the precedent will
be persuasive rather than binding.

When is a precedent not binding?

A precedent is not binding where it:

 has been overruled by a higher court.

 has been overruled by statute.

 was made without proper care (per incuriam). This is where a decision of a
court is held to be wrongly decided because the judge was misinformed of the
law. A judgment per incuriam is not binding and has no authority.

 can be distinguished from the earlier case, i.e. the material facts differ.

A previous case is only binding in a later case if the legal principle involved is the
same and the facts are similar. Where the facts are materially different then a
previous decision does not need to be followed.

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