What is a PRECEDENT in legal terms?

In legal terms, a precedent refers to a prior court ruling or opinion that sets an example or authority for future cases that are similar in nature. This concept is fundamental to common law systems, where courts are bound to follow the principles established in previous decisions, thereby promoting consistency and predictability in the law. When judges encounter cases that share similar facts or legal issues, they look to precedents to guide their decisions, ensuring that the outcomes are aligned with established legal principles. This reliance on previous rulings helps maintain a cohesive legal framework, as it allows individuals and entities to understand how the law is likely to be applied based on past judgments. The use of precedent not only reinforces the rule of law but also supports the idea of fairness by treating like cases alike.