Legal Definitions - binding precedent

Binding precedent is a legal rule or principle that must be followed by lower courts within its jurisdiction. When an appellate court reviews a case, it delivers a written opinion that includes its determination on some legal matter. This determination, known as a holding, is binding on all lower courts within the jurisdiction. This means that lower courts must apply this decision when presented with similar facts.

For example, the Supreme Court is the highest court in the U.S. and its decisions are binding on all other courts in the U.S. If the Supreme Court decides that a certain law is unconstitutional, all other courts in the U.S. must follow this decision and declare the law unconstitutional if presented with a similar case.

Similarly, the decisions of the highest court in New York are only binding on other New York courts, but not courts in other states. If the highest court in New York decides that a certain contract is unenforceable, all other New York courts must follow this decision and declare the contract unenforceable if presented with a similar case.

These examples illustrate how binding precedent works. Once a higher court makes a decision on a legal matter, lower courts must follow that decision when presented with similar cases. This helps ensure consistency and predictability in the legal system.