In the doctrine of precedent, binding precedent means that lower courts must follow higher court decisions.

• A. Lower courts must follow higher court decisions
• B. All courts are free to decide as they wish
• C. Decisions from other provinces are binding on all courts
• D. The same decision must be repeated in every case

Answer: (A)

Binding precedent comes from the hierarchy of courts: when a higher court decides a point of law, that ruling creates a rule that lower courts must follow in later cases with similar issues. This structure keeps the law consistent and predictable, so people and businesses can rely on how the law will be applied in comparable situations. The obligation to follow is limited to the binding rule from the higher court’s decision within the same jurisdiction, and it’s the ratio decidendi (the essential reasoning) that binds, not every remark made in the judgment. Decisions from courts in other provinces or jurisdictions aren’t binding in the same way; they can be persuasive but not controlling. Also, a court doesn’t have to replicate the exact outcome in every case—the rule is applied to the facts, and courts can distinguish cases if the facts are different.