Why is "legal precedent" significant in common law?

Legal precedent is significant in common law because it maintains consistency in judicial decisions. This concept operates on the principle of stare decisis, meaning that judges are obliged to follow the established rulings of previous cases that are relevant to the current case before them. By adhering to precedents, the legal system ensures that similar cases are treated alike, which fosters stability and predictability in the law. This is essential for upholding the rule of law and providing individuals and entities with a clear understanding of their legal rights and responsibilities.

The nature of legal precedent implies that while it creates a framework for consistency, it does not provide judges with the luxury of creating unique laws or disregarding previous rulings arbitrarily. Instead, it builds upon established legal principles and allows for interpretation and adaptation within those confines, ensuring that the law evolves appropriately while maintaining its foundational integrity.