IMPORTANCE OF PRECEDENTS
Every developed legal system possesses a judicial organ. The judicial organ’s main function is to adjudicate the rights and obligations of the citizens. In the beginning, in this adjudication, the courts are guided by customs and their own sense of justice. Later on, legislation becomes the main source of law and the judges decide cases according to it.
There are two methods:-
Almost in every legal system, the judges look into the previous decisions on the point, and depend on them. The authority of such decisions is not the same everywhere. In some countries such as India, they get the knowledge of law through decisions of higher tribunals than from anything else. The decisions of previous cases are compiled and published in reports. From the legal literature perspective these reports are considered to be very valuable. In future, these decisions will be very efficient to decide cases of similar nature. This is called judicial precedents or precedents.
The nature of precedents are:-
Precedents are Judge made laws making them more practical. Precedents are based on cases, it is not like statute law which is based on a priori theory. But the demerit is that the doctrine of precedent is the development of the law depending on the incidents of litigation. It is possible that the most important points may remain not legally settled because nobody brought an action upon them.
A binding precedent is a precedent that must be followed by all lower courts under common law legal systems. Binding precedent depends on the legal principle of stare decisis. A stare decisis means to stand by things decided. There are cases which involve questions which admit of being answered on principles. The reason for the decision, which is called Ratio Decidendi, is the only thing that is binding to similar cases in future. The judge’s opinions which are not relevant in deciding cases of similar nature are called Obiter Dictum. Therefore to conclude, a precedent is a judge made law of which only the Ratio Decidendi is binding and Obiter Dictum is not binding.
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