A precedent is a decision, ruling, or principle that is made by a judge using his or her own judgment or by observing the customs, traditions, and decisions made in other countries in cases of similar crimes in the absence of any existing law relating to a crime or dispute.

Precedent is only set by the courts of countries that adopt the common law system, and precedent is not set in countries that adopt the civil law system. In such countries, it is limited to what is in the law. In the case of Nepal, Nepal is a country that adopts the common law system.
Precedent is used in such a situation when there is no law related to a case and in the context of Nepal, only the Supreme Court has the right to set precedents and the precedent or principle set by the Supreme Court is applicable to the Supreme Court and lower courts and it cannot be said that it is not accepted. Precedent is binding and there are many types of precedents such as:-
1) Declaratory Precedent
2) Original Precedent
3) Authoritative Precedent
4) Persuasive Precedent
A precedent that is not binding but can influence a decision is called a non-binding precedent. But it can still have an impact.

In other words,
An important source of law, which is neither as new as the legislature nor as old as custom. It is also called “judge made law”. A principle established by precedent is applied as law until it is overturned by the legislature. Precedent developed under the common law system.
Even a lower court cannot do this. Precedent is also accepted as a binding source of law because it is binding on the Supreme Court and subordinate courts, judicial bodies, other state bodies, and the public.



