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Precedent: Definition, Example and Related Terms

What is a Precedent ?

A precedent is a legal principle or rule that is created by a court decision. This principle or rule can be used by judges in future cases when they are deciding issues that are similar to those in the original case.

Think of a precedent as a kind of guide or example that helps judges make their decisions. When a court makes a decision, that decision can serve as a precedent for other courts to follow. This helps to ensure that the law is applied consistently in different cases.

There are two main types of precedent: binding and persuasive. A binding precedent is one that a court must follow. This usually comes from a higher court in the same jurisdiction. A persuasive precedent, on the other hand, is one that a court can consider but does not have to follow. This might come from a lower court or a court in a different jurisdiction.

For example, a decision made by the Supreme Court of the United States would be a binding precedent for all lower federal and state courts in the United States. However, a decision made by a state court in California might be a persuasive precedent for a court in New York.

Example(s)

  • Scenario Description
    Landmark Supreme Court Decision A decision made by the Supreme Court on a constitutional issue will set a precedent that lower courts must follow. For example, the decision in Brown v. Board of Education set a precedent that racial segregation in public schools is unconstitutional.
    Contractual Dispute Case If a court decides a case involving a specific interpretation of a contract clause, that decision might be used as a precedent in future cases involving similar contract clauses.
    Employment Law Ruling A ruling by a federal appeals court on an employment discrimination case could serve as a precedent for other employment discrimination cases within that court's jurisdiction.