Binding precedent
Binding precedent operates within a court hierarchy. A lower court generally follows the ratio decidendi, the legal reasoning necessary for the decision, of a higher court where the material facts and legal context are sufficiently alike. Other judicial comments may be persuasive rather than binding. Distinguishing a case, later statutory changes and rules about a court’s own previous decisions affect the analysis. Not every sentence in a judgment binds every later court.
Worked example
A lower court considers a higher court decision establishing a rule on the same legal issue. If the material facts are not distinguishable and the rule remains applicable, it follows the binding ratio.
Common mistake
Treating every remark in any earlier judgment as binding, or ignoring the court hierarchy and materially different facts.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | LW (ENG) | Direct | September 2026–June 2027 |