English law has developed from custom and the decisions of judges in cases. This system of law is known as common law.
The decisions of judges in cases are known as precedents. Therefore, the precedent is an important source of law. It creates law for future judges to follow.
The doctrine of precedent means the courts must follow decisions of the courts above. This is called stare decisis.
The idea of treating similar cases in the same way promotes the idea of fairness and provides certainty.
Staredecisis is the fundamental principle of precedent, and means that a decision in an early case will stand as guidance for all future cases.
Ratiodecidendi is part of the judgement which forms the precedent for futurecases. For example, words that can prevent an assault can be found in the ratio of Tuberville v Savage.
Obiterdicta comprises the rest of the judgement apart from the ratio decidendi. Judges do not have to follow it but it can be helpful.