A controlling rule, example, or guide in legal contexts is known as what?

The concept of "precedence" plays a significant role in legal contexts, particularly in the realm of common law. Precedence, also known as "stare decisis," refers to the legal principle that courts should follow prior judicial decisions when the same points arise in litigation. This creates consistency and predictability in the law, allowing individuals and entities to understand how laws may be applied based on past rulings.

When courts refer to precedents, they follow established interpretations of the law unless there is a compelling reason to deviate from that interpretation. This adherence to previous decisions helps guide judges in making rulings and provides a framework for lawyers in advising their clients about the nature of legal outcomes based on existing case law.

In contrast, the other options represent different legal concepts. Judicial review relates to the authority of courts to evaluate the constitutionality of legislative acts. Respondent superior is a doctrine in tort law that holds an employer liable for the actions of an employee performed within the course of their employment. Contractual understanding refers to the mutual agreement and interpretation of terms within a contract. Each of these plays a unique role in legal practice, but they do not embody the concept of a controlling rule or guide in the same way that precedence does.