What is meant by "legal precedent"?

Legal precedent refers to a judicial decision that establishes a principle or rule that can be followed in subsequent similar cases. This concept is foundational to the common law system, where courts look to past decisions to guide their judgments in current cases. When a court makes a ruling on a legal issue, that ruling can serve as a reference point for future cases, promoting consistency and predictability in the law.

In essence, legal precedent helps to ensure that similar facts lead to similar outcomes, creating stability within the legal system. Courts are generally bound to follow precedents set by higher courts in their jurisdiction, which aids in the development of legal norms over time. This reliance on previous decisions is what distinguishes legal precedent from other concepts such as new laws created by legislatures, which are not based on past judicial decisions.