An earlier court decision that guides or binds how later, similar cases must be decided.
What it means
A precedent is a principle established in an earlier court decision that influences later cases. Under the doctrine of stare decisis, Australian courts are bound by decisions of higher courts in the same hierarchy on similar facts. Decisions of courts in other states, or lower courts, may be persuasive but not binding. The High Court of Australia sits at the top, and its decisions bind all other Australian courts.
How it's used
The judge applied a High Court precedent that settled how this kind of contract clause must be interpreted.
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