Many laws have been created using this system, e.g the offence of murder. This has created a single set of laws common to the whole country, known as 'common law'.
The legal system has a hierarchy of courts. Decisions made in a higher court creates an original precedent for all lower courts. This must be followed by other courts in similar cases.
Distinguishing and Overruling
Distinguishing means the judge finds facts in the present case are different from the previous one and will allow them to reach a different decision and not follow precedent.
This is where a court higher up in the hierarchy states that a legal decision in an earlier se is wrong and overturns it. E.g The supreme court an overrule a lower court's decision when it hears an appeal.
Judge can make laws by the way they interpret the statutes or Acts of Parliament. A statute is a written law. Judges need to interpret the meaning of words and apply them to case they are judging in.
The literal rule, the golden rule, and the mischief rule.
Judges should use the everyday meaning of words in statute, but words can have several meanings. E.g R v Maginnis (1987) case involving illegal drugs. Different meanings were found for the word supply.
The literal rule can sometimes lead to an absurd result. The golden rule can be applied to avoid this happening. E.g Under the Official Secrets Act (1920) it was an offence to obstruct Her Majesty's Forces in the vicinity of a prohibited place, such as a naval base.
This allows the court to enforce what the statute was intended to achieve, rather than what the words actually say. E.g Licensing Act (1872) makes it an offence to be drunk in charge of a carriage on the highway.