Which term describes the holding, or the principle of law on which a case is decided?

• A. ratio decidendi
• B. stare decisis
• C. dicta
• D. verdict

Answer: (A)

The key idea is the rule of law that the court actually applies to the facts to reach its decision. That rule, distilled from the reasoning and essential to deciding the case, is called the ratio decidendi. It’s the part of the opinion that becomes binding precedent for future cases with similar issues and facts because it expresses the principle the court relied on to decide the outcome.

This is different from dicta, which are statements or observations in the opinion that aren’t necessary to decide the case and aren’t binding as precedent. It’s also distinct from the verdict, which is the jury or judge’s final decision on the case’s outcome, not the underlying legal rule used to get there. And while stare decisis is the broader doctrine that decisions should be followed as precedent, it’s the ratio decidendi that actually supplies the binding rule for future cases.