What does the term 'precedent' refer to in legal contexts?

The term 'precedent' in legal contexts refers to how similar cases have been decided in the past. This principle is fundamental in common law systems, where courts are obligated to follow the rulings of previous cases that are relevant to the matters at hand. When a court encounters a case with facts and legal issues similar to an earlier case, it looks to the earlier decision to guide its ruling. This not only ensures consistency and predictability in the law but also helps to uphold the principle of fairness by applying the same legal standards to similar situations. Precedent enables the law to evolve over time, as courts may distinguish new cases based on specific facts or societal changes, yet still rely on established decisions as a foundation for their judgments.