What does "precedent" mean in legal terms?

In legal terms, "precedent" refers to a case or legal decision that serves as an example or rule for future similar cases. Judicial decisions that establish precedents guide judges in making rulings on cases with similar circumstances, thereby ensuring consistency and predictability in the law. When a court decides a case, that decision becomes a part of the body of law and can be referenced in future cases to ensure similar legal standards are applied.

This concept is foundational to the doctrine of stare decisis, which means "to stand by things decided." Courts will typically follow established precedents unless there is a compelling reason to deviate from them, such as new information, changes in society, or a significant shift in legal interpretation. This reliance on precedent helps to maintain stability in legal systems by ensuring that similar cases yield similar outcomes, which is essential for fairness and justice within the legal framework.