Ratio decidendi
The reason for the decision
The ratio decidendi is the central legal principle or rule of law on which a judicial decision actually rests and which may constitute binding precedent.
The ratio decidendi refers to the decisive legal ground in a judgment, namely the specific legal rule that determines the outcome of the case. It is to be distinguished from obiter dicta, which, although included in the judgment, are not decisive for the ruling.
The concept is particularly relevant in common law systems, where the principle of stare decisis applies and lower courts are bound by the ratio decidendi of higher courts. This fosters consistency and predictability in the case law.
In Dutch practice, within a civil law system, the ratio decidendi is employed in the analysis of Supreme Court rulings to determine the scope of the jurisprudence, even though precedents are not strictly binding in this jurisdiction.
“Counsel argued that the lower court had misapplied the ratio decidendi of the Hoge Raad’s judgment when assessing liability.”
Related terms
Need legal advice?
Schedule a free consultation with one of our specialists