In law, precedent refers to previous court decisions that guide how similar cases should be decided in the future. Under the common law system used in most of Canada (except Quebec's civil law for private matters), courts follow the principle of stare decisis, meaning they generally respect and follow earlier rulings on similar legal questions. Higher court decisions are binding on lower courts within the same jurisdiction. Precedent creates consistency and predictability in the legal system, as lawyers and judges can look to past cases to understand how laws have been interpreted. Precedents can be overturned, but this requires compelling reasons.