What is the significance of precedent in legal system?

The significance of precedent in the legal system lies in its function of binding courts to follow previous rulings in similar cases. This principle, known as stare decisis, ensures consistency and predictability in the law, as courts are expected to adhere to established legal principles when faced with similar facts. By following precedent, courts contribute to the stability of the legal system, allowing individuals and entities to understand their rights and obligations based on previous interpretations of the law. This reliance on past decisions fosters a sense of fairness, as similar cases are treated alike, ensuring that justice is served in a uniform manner across different cases.

In contrast, other options do not capture the essence of precedent. Drafting new laws, initiating civil suits, and geographical jurisdiction relate to broader legal concepts rather than the specific role of precedent in influencing judicial decision-making.