In recent time it is noticed that the burden upon the court of law is too much as to the cases are concern. Number of litigants is increasing along with the number of cases. From small to smaller cases are also approached to the courts of competent jurisdiction, but the number of courts and adjudicators has not been increased as to the incensement of the cases (Ali, 2013). By virtue of that the load on courts regarding the cases are very much influencing for any alternative way in relation to resolving the disputes among the concern parties who are seeking justice from the judicial system. The cost in judicial matters are also very high in comparison, as all the justice seekers may not be as such financial sound but they are entitle to get the justice, in spite of that they have to incurred a good amount of expenses in relation to the court procedures. Here alternative dispute resolution plays an effective as well as very vital role in the field of resolution of disputes (Chern, 2011). Many courts has also recognized the alternative dispute resolution and observed that alternative dispute resolution is very much essential for the society for the purpose of resolving the disputes in a rapid speed with a lesser amount of expenses in comparison to the judicial proceedings (Brenninkmeijer, Jagtenberg and De Roo, 2006).
One of the main sources of law is precedents; the other foremost source is legislation. When there is any conflict between two or more statutes regarding any fact in issue or if the concern statute is silent upon any particular fact in issue then the court of competent jurisdiction shall have the power to intervene as to proper interpretation of the provision of the statute. The court by taking into consideration the main object and purpose of the statute interprets the conflicting provisions. The court mentions its observation at the time of giving the judgment; this observation enforces some changes into the statutory provisions. Judges can interpret the provision regarding the ambiguity. But judges cannot make any interpretation in suo moto manner, they are empowered to do so whenever any matter in dispute comes before the court and which includes such a conflict or ambiguity regarding the matter in issue, and the conflicting provisions of the concern statutes. After doing necessary interpretations those interpretations becomes a law and shall have the binding enforceability of law as well. The court of competent jurisdiction is also has the power to nullify any provision of any statute in issue (Parpworth and Pollard, 2006).
From the earlier period precedential laws are considered with the great significance. There are several grounds of the applicability of precedential law into the union laws. The major benefits depending upon which the union laws adapts the procedure of precedential law are discussed under the following;
In relation to the standards of judicial instance to demeanor its procedure, it is indispensable to be competent to make a decision about the smudge of legal phenomena. Throughout the course of transmission of a judgment, the judge used to place out their justification for accomplishment of a conclusion. The cause that is required for them to appear at their termination quantity to the particulars concerning the ratio decidendi of the case. The ratio decidendi figures the lawful code which is a obligatory precedent sense it have to be followed in the upcoming cases consisting the similar substance facts. It is significant to divide the ratio decidendi as of the obiter dicta (Bryson, Dauchy and Mirow, 2006).
In the Donoghue v Stevenson case, the House of Lords observed that, a maker allocated a duty of concern to the crucial customer of the manufactured goods. This laid down a obligatory precedent which was pursued in the case of Grant v Australian Knitting Mills . Also in the case of Shaw v DPP , the House of Lords observed that a criminal conspiracy to fraudulent community ethics existed. This was pursued in the case of Knuller v DPP too.
Union laws are mainly based upon the customary laws and in the legal surroundings of UK, customary laws plays the most important role. Statutory laws are interpreted by the adjudicators and that is the main reason of the fact that in this decisions or laws, margin of errors are very less. So, consequently it is quite easy to adapt with an overview of having definite and precise legal provisions. The legal phenomenon in the United Kingdom were depended mostly on judge-made laws, these laws established by way of decisions taken by judges crucial to decide the cases placed in front of them – is known as "common law" or case-laws, till around the seventeenth century. Each and every jurisdiction of the nation established its own kind of common laws, here Scotland in particular discrete from the others (Nikolic, 2009). From that time, fresh laws and law alteration have ever more been introduced about by Acts of Parliament, generally enthused by guiding principles of the Government of the day. Nonetheless, the improvement of case-laws still leftovers a vital resource of law. A declaration of law prepared by a judge while deciding a case be able to become obligatory on later adjudicators and may by this way turn out to be the law for everyone must follow. Whether or not a particular announcement, in principle known as a precedent, by a adjudicator sitting in court of law whilst deciding a matter in dispute does turn out to be binding, in accordance to the principle of "stare decisis" - set by what has formerly been determined, on later juries depends upon two major factors:
The assertion must have created the ratio decidendi of the matter in dispute; this is a Latin concept for the way of thinking at the back of the decision. The analysis has to be a subject matter pertaining to the law to a certain extent than a factual decision. In adding together, the assertion should not be obiter dictum - a little said moreover about the law or the particulars of the matter in dispute which is "by the way", in other language, not austerely compulsory for the legal base for the conclusion. Merely the ratio decidendi will be obligatory. It will consist of the legal doctrines and regulations which are essential to resolve the predicament in front of the court. Obiter dicta are not obligatory, but it could be considered as of "persuasive authority" - later adjudicators are at liberty to follow them and be prejudiced by them, but they are not appreciative to go after these parts of legal pronouncements (Dauchy, Bryson and Mirow, 2010).
Ratio decidendi signifies the promptness of the legal provisions taken by the court of law. It describes the capability of the sentence pronounced by the judge and these laws are quite decisive in relation to future cases with similar kind. It can be followed by any kind of legal concept in relation to the similar kind of cases within the same legal territory. Union laws mainly focus on the decisive and definite provision without any ambiguity that are quite available in the precedential laws as the ambiguity level is eliminated by the judiciary (Knowles, and Thomas, 2012).In the common law legal systems, a precedent or last word is a theory or regulation recognized in a preceding legal case that be also binding on or convincing for a court of competent jurisdiction or supplementary tribunal when come to a decision in the subsequent cases with comparable subjects or facts (Rosati, 2012). The Common law legal systems put a great significance on deciding matters in dispute in accordance to the consistent ethical rules consequently analogous particulars will yield alike and unsurprising outcomes, and adherence of precedent is the apparatus by which that objective is reached. In Law Dictionary of Black it is defined that "precedent" as a "regulation of law recognized for the initial time by a court of competent jurisdiction for a meticulous kind of matters in dispute and after that suggested to in make a decision in the comparable cases." The Common law precedent system is a third type of law, on equivalent grip with statutory laws, statutes and codes established by legislative authorities, and regulatory law, where set of laws are propagated by decision-making branch agencies (Edwards, 2009).
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