That path is completed when you push in the horn button. When the button is pushed the ground connection is made, energizing the relay's coil "A". The coil's iron core (in this particular design) pulls down arm, connecting high-current contacts "B". High current then flows from the battery to the horn (the horn is connected to ground because it's mounted to the chassis of the car). See how it works?
That's right. Now you have isolated the problem to the relay and only two things can be wrong: either the relay's coil isn't energizing (due to an internal broken wire) or the high-current contacts are being drawn together but no current is passing through (remember high-resistance connections?). If the coil is bad the relay must be replaced. If the contacts are charred, file them smooth.
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