In legal terms, what is a 'precedent'?

A precedent refers to a previous legal ruling that serves as a guiding principle for future cases. This concept is foundational in common law systems, where it is well-established that courts are bound to follow the legal principles established in earlier cases with similar facts. This adherence to prior decisions promotes consistency and predictability in the law, ensuring that similar cases yield similar outcomes.

When a court resolves a dispute, the ruling can provide a framework for resolving similar matters that arise subsequently. Courts may distinguish, affirm, or overrule precedents based on the facts or evolution of the law, but the initial role of a precedent is to act as a reference point for resolving legal questions moving forward.

The other options detail important legal concepts but do not represent the precise definition of a precedent. A law enacted by Parliament refers to statutory law, while a case currently under trial is a specific legal situation and does not pertain to established rulings. A recommendation by judges could inform future rulings but lacks the binding authority of a precedent. Thus, the definition of a precedent as a previous legal ruling guiding future cases is accurate and significant in understanding legal processes.