Ratio decidendi refers to the holding, or the principle of law on which a case is decided.

• A. The binding authority that controls future decisions.
• B. The procedural history.
• C. The facts of the case.
• D. It is the holding, or the principle of law on which a case is decided.

Answer: (D)

Ratio decidendi is the holding—the legal rule or principle of law the court actually applies to the facts in order to resolve the case. This is the part of the judgment that explains why the outcome is what it is and is the element that future courts must follow in similar situations, forming binding precedent. The facts describe what happened, the procedural history outlines how the case progressed, and any obiter dicta are statements made by the judge that aren’t essential to the decision and aren’t binding. So, the ratio decidendi is precisely the holding or principle of law on which the decision rests.