The decision made by the judges, also known as judgment, in which containing the explanation of the legal principles on which the judges has made a decision, this is called the ratio decidendi, in Latin stands for ‘reason for a decision’. The judges may speculate his decisions would or might have been if the facts are different, it includes the judges thought processes, this is called obiter dicta, in Latin stands for ‘things said by the way’.
If there are similar facts in a case, the judges may choose to follow the decisions made in previous cases as to produce a decision, or to distinguish the facts, see if they are different from those of the previous one, the judges may choose not following the earlier one. The judges may overrule the previous decision if they disagree with it and was made in a lower court, however, it is only used warily because it may weaken the authority and respect of the lower courts. Besides of overrule, the judges may also reverse the earlier decision unless he thinks that the law applied in the previous case is misinterpreted.
There are different types of precedent, basically it can be divided as 3 types, which are binding, persuasive and original precedent. All judicial decisions in a specific court’s jurisdiction heard at that court’s level or higher are considered to be binding