Which statement best describes 'obiter dicta'?

The term 'obiter dicta' refers specifically to comments or remarks made by a judge in a judicial decision that are not essential to the court's ruling. These remarks do not form the core legal basis upon which the judgment is decided but may provide insight or context regarding legal principles that could be relevant in future cases.

Understanding obiter dicta is important for recognizing how courts articulate their reasoning, share interpretations of the law, and perhaps suggest considerations for similar issues that may arise later. While these remarks can be informative and may influence future legal arguments or decisions, they do not carry the same weight as the legal principles that establish the binding precedent of the case.

In contrast, the other statements describe different concepts in law. For instance, a legal principle that forms the basis of a judge's decision is known as the 'ratio decidendi,' which is essential to the ruling. A final decision in law is simply the conclusion reached by the court, and binding authorities are those legal precedents or statutes that the courts are obliged to follow.