Which term describes the legal principle that decisions in previous cases influence future case outcomes?

The term that describes the legal principle whereby decisions in previous cases influence future case outcomes is known as stare decisis. This principle is foundational in common law systems and ensures that courts abide by established precedents when making their rulings. By adhering to stare decisis, courts provide consistency and predictability in the law, allowing individuals and entities to have a clearer understanding of legal expectations based on past judicial decisions.

Stare decisis operates by requiring that courts follow the legal precedents set forth by higher courts within the same jurisdiction. This solidifies the idea that similar cases should be treated similarly, thereby enhancing fairness and stability in the legal system.

The other terms relate to different legal concepts. Res judicata, for instance, pertains to the issue of claim preclusion, meaning a matter that has been definitively settled in a prior verdict may not be re-litigated. Ratio decidendi refers to the legal reasoning or principles that form the basis of a court's decision, while obiter dictum encompasses remarks or observations made by a judge that are not essential to the ruling and therefore not legally binding in future cases. Understanding these distinctions enhances comprehension of how legal principles operate within the framework of law.