this is my business work

1. Task 6 (P6 & D2)
Unit 23
By: Ireti Lawal

2. • What is Judicial Precedent?
Judicial precedent is the source of law where past decisions of the judges create law
for the future judges to follow. This source of law is also known as case law. It is a
major source of law, both historically and today.
Example of Judicial Precedent:
Balfour v Balfour case in [1918-19] [Precedent – distinguishing]
A husband promised to pay his wife £30 a month while she remained in England and
he worked in Ceylon. Their marriage broke down and the wife brought an action to
reclaim money she said her husband owed her.
Quote from the case:
“The common law does not regulate the form of agreements between spouses.... each
house is a domain into which the kings writ does not seek to run ..."

3. What is Stare Decisis?
Is a Latin word and it means (“stand by the decision”) it is a legal phrase referring to the obligation
of courts to honour past precedents.
The doctrine of precedent: it is a system based on the Stare Decisis, which loosely means ‘stand by
what has been decided and do not unsettle the established’. This supports the idea of fairness and
provides certainty in the law.
Example of Stare Decisis:
Mrs Donoghue went to a cafe with a friend. The friend brought her a bottle of ginger beer and an
ice cream. The ginger beer came in an opaque bottle so that the contents could not be seen. Mrs
Donoghue poured half the contents of the bottle over her ice cream and also drank some from the
bottle. After eating part of the ice cream, she then poured the remaining contents of the bottle over
the ice cream and a decomposed snail emerged from the bottle. Mrs Donoghue suffered personal
injury as a result. She commenced a claim against the manufacturer of the ginger beer.
Held:
Her claim was successful. This case established the modern law of negligence and established the
neighbour test.
Quote from the case:
“You must take reasonable care to avoid acts or omissions which you can reasonably foresee would
be likely to injure your neighbour.”

4. Precedent and the Courts
• How is precedent applied in Courts Courts bound by it Courts it must
follow
the courts?
European Court All Courts None
A precedent is a previously decided
court case on the same issue as the Supreme Court All other Courts in the European Court
issue in the case the court is now English legal system
being asked to decide. Case law Court of Appeal Itself (with exception) European Court
precedent from the same state Divisional Courts Supreme Court
All other lower Courts
binds the courts to follow the
Divisional Court Itself (with exception) European Court
decision. If you have a case that High Court Supreme Court
involves the meaning of a phrase, All other lower Courts Court of Appeal
the case will be decided by following
other cases that have High Court County Court European Court
Magistrates’ Court Supreme Court
interpreted the phrase. Court of Appeal
Divisional Court
The hierarchy of the courts: Crown Court Possibly Magistrates‘ All higher Court
In England and Wales the courts Court
operate a very rigid doctrine of Understanding which Courts come where in the
judicial precedent which has the hierarchy. Each Court and its position in respect of the
effect that: other Courts. Until October 2009 the senior court in
• Every court is bound to follow the UK legal system was the House of Lords. This
any decision made by a court court was abolished and replaced by the supreme
above it in the hierarchy. Court. The lower Courts have to follow decisions of
• In general, courts that hears the Supreme Court and also decisions by the House of
appeals are bound by their own Lords which have not been changed by the supreme
past decisions. Court.