In common law systems, the doctrine of precedent dictates that courts must follow the decisions of higher courts in similar cases. This principle ensures consistency in the application of the law and promotes fairness and predictability in the legal system. Precedent can be binding or persuasive. Binding precedent must be followed by lower courts within the same jurisdiction, while persuasive precedent is not mandatory but can be influential in guiding judicial decisions. There are two types of binding precedent: vertical and horizontal. Vertical precedent refers to decisions made by higher courts that lower courts are bound to follow. Horizontal precedent, on the other hand, involves courts being bound by their own previous decisions. When a court is faced with a case that does not have a clear precedent, it may engage in distinguishing or overruling precedent. Distinguishing involves finding differences between the current case and previous decisions to justify a different outcome, while overruling occurs when a higher court decides to reject or overturn a previous decision. Overall, the doctrine of precedent plays a crucial role in shaping the development of the law and ensuring consistency and stability in the legal system.