What is binding precedent?

• A. Decisions that must be followed; lower courts must follow higher court decisions in the same jurisdiction
• B. A suggestion to consider a case but not required
• C. A guideline created by the executive branch
• D. A local court order

Answer: (A)

Binding precedent means decisions made by higher courts must be followed by lower courts in the same jurisdiction. It’s part of the system of stare decisis, which keeps the law predictable and consistent by ensuring similar cases are decided in a similar way.

The binding part comes from the ratio decidendi—the legal reasoning that actually decides the case. That reasoning sets a rule or principle that other courts must apply when faced with similar facts. Things the judge mentions as explanations or ideas not essential to the decision (often called dicta) aren’t binding in the same way.

So, when a higher court says a particular rule applies to a type of dispute, lower courts are obligated to apply that rule in future cases with similar circumstances. The other options describe non-binding guidance, executive guidelines, or a specific order, none of which capture the enduring obligation created by binding precedent.