How are precedents made?

Precedent means that the principle announced by a higher court must be followed in later cases. A recent decision in the same jurisdiction will be given great weight. Decisions of lower courts are not binding on higher courts, although from time to time a higher court will adopt the reasoning and conclusion of a lower court.

Answer

How are precedents made?

Precedents are made by judges deciding cases. The principles that are necessary for the decision of the case become precedents, that is, principles that are followed or used by subsequent courts in deciding cases that present the same issues. Principles discussed in a case that are not necessary for the decision are "dicta" and are not binding on subsequent courts.

Precedents therefore arise from the legal principles created by a court decision. In general, decisions of higher courts within a system are mandatory precedent on lower courts within that same system. The principle announced in the decision must be followed in later cases.

Cases need not be identical or similar to control. The principle announced in a case transcends the particular facts in that case and will be applied to different fact situations. However, a decision may be grounded in the specific facts and will not be applied generally. The court that created the precedent can always overrule it.

Knowing the difference is what law school is all about. The process of judicial decision making, the use and role of precedents, constitutional and statutory interpretations, is what a legal education teaches.