Legal precedent refers to a legal principle or rule established in previous court decisions that guides judges in future cases. When a court makes a ruling, that decision can serve as a benchmark for similar cases, ensuring consistency and predictability in the law. This practice is known as stare decisis, which means "to stand by things decided." Precedents can be binding or persuasive. Binding precedents must be followed by lower courts within the same jurisdiction, while persuasive precedents may influence decisions but are not obligatory. This system helps maintain a stable legal framework and promotes fairness in the judicial process.