What does ‘precedent’ mean in legal terms?

In legal terms, 'precedent' refers specifically to a legal decision or case that serves as an authoritative rule or example for future similar cases. This principle is fundamental to the doctrine of stare decisis, which compels courts to follow the established rulings in prior cases when deciding on new cases with comparable circumstances or legal questions. By adhering to precedent, the legal system promotes consistency, predictability, and fairness in the application of the law.

The other choices, while relevant to legal processes, do not capture the full meaning of 'precedent.' A set of laws that governs a particular area of law refers to legislative statutes rather than case law. A document that puts forth an argument in court describes legal pleadings, such as briefs, rather than the concept of precedent itself. A verdict reached by a jury pertains to the outcome of a specific trial instead of establishing a rule for future cases. Thus, the first option is the most accurate reflection of the meaning of 'precedent' in a legal context.