"Ratio Decidendi" is a Latin term meaning "the reason for the decision.
" In common law systems, it refers to the essential legal principle upon which a judicial decision is based.
Let's analyze the statements:
i.
the reason or basis on which case is decided: This is the literal and core meaning of the term.
Correct.
ii.
the general observations.
.
.
: These are known as 'obiter dicta' (things said by the way) and are not binding.
Incorrect.
iii.
the rule of law which is regarded as a binding authority: The ratio is the part of the judgment that forms the binding precedent for lower courts.
Correct.
iv.
a ruling which is applicable to future cases.
.
.
: Because it is the binding precedent, the ratio is the rule that applies to future cases with similar material facts.
Correct.
Therefore, statements i, iii, and iv correctly describe the meaning and function of Ratio Decidendi.