English translation: Charles Johnston (1912) · word meanings below from the same source. Source
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The purpose of this Sutra is, to distinguish between the mental process of predication, and observation, induction or testimony. Predication is the attribution of a quality or action to a subject, by adding to it a predicate. In the sentence, “the man is wise,” “the man” is the subject; “is wise” is the predicate. This may be simply an interplay of thoughts, without the presence of the object thought of; or the things thought of may be imaginary or unreal; while observation, induction and testimony always go back to an object.