Judicial Precedent is a legal principle where past court decisions influence future cases. When a court makes a ruling, it sets a standard that lower courts must follow in similar situations. This ensures consistency and predictability in the law, allowing individuals and businesses to understand their rights and obligations. The doctrine of stare decisis underpins judicial precedent, meaning "to stand by things decided." Courts look to previous judgments for guidance, especially from higher courts. This system helps maintain stability in the legal framework, as similar cases are treated alike, promoting fairness in the judicial process.