What do you mean by precedent?

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Precedent means a judgment or decision of a court of law cited as an authority for deciding a similar set of facts. It contains cases which serve as an authority for the legal principle embodied in its decision. A precedent which creates and applies a new rule is called an original precedent. Declaratory precedent does not create a new rule that merely apply on existing rule of law.

On the basis of the enforceability precedents can be further divided into two parts:

(a) Authoritative precedent

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(b) Persuasive precedent. An authoritative precedent is binding while the persuasive precedent is not binding and is worth of consideration only.

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