What does the term "precedent" signify in the legal field?

In the legal field, the term "precedent" signifies previous court decisions that serve as a guiding framework for future cases. This principle is a core aspect of common law systems where the outcomes of earlier cases influence the rulings in later cases with similar circumstances. The concept of precedent ensures consistency and predictability in the legal process, allowing individuals and entities to understand the likely outcomes of their legal actions based on established interpretations of the law.

Judges often refer to landmark cases or earlier rulings when making decisions, thereby reinforcing the body of law that evolves through judicial interpretations. This reliance on precedent helps maintain a stable legal environment where similar cases yield similar results, promoting fairness in the judicial process.