Judicial precedent is the past laws where judges follow to make a judgment in future cases. Judicial precedent is a legal case that the court may apply when making the rule of a similar case in future. The judges are required in some cases to set down principles which were laid down by the superiors in the past. The judicial precedent is based on stare decisis principle. The judicial precedents are both authoritative and binding and must be well followed. For a judicial precedent to work, it is necessary to know whether the point where the law is placed. When giving judgment of a particular case, the judge normally sets out the facts in connection with the case, laws applicable to the case and facts of the case. The judicial precedent is a source of the English law and it is the one which applies to the new rule.