What type of law is based on English custom and recognized by courts as binding?

The correct choice is common law, which originates from English custom and has evolved through judicial decisions and court rulings over time. Common law encompasses legal principles that are derived from judicial interpretations and precedent rather than being specified in constitutions or statutes. This body of law is recognized by courts and holds binding authority in legal matters unless overridden by statutory law or constitution.

Common law is essential because it allows for adaptability and the ability to address new legal situations based on past court decisions, maintaining continuity and stability in the legal system. It serves as a foundation for many legal systems, particularly those that follow the Anglo-American legal tradition.

In contrast, statutory law refers to laws enacted by legislatures and written into statutes, while regulatory law is concerned with regulations created by governmental agencies. Case law, while related to the judicial interpretation of statutes and common law, specifically refers to the decisions made in individual cases, which contribute to the body of law but do not encompass the broader principles and customs of common law.