What is persuasive precedent?

Persuasive precedent refers to legal decisions or statements that are not binding on a court but can influence its decisions in similar cases. This often includes obiter dicta, which are remarks made by judges that do not form part of the legal reasoning for the decision and therefore are not binding authority. However, these comments can still provide guidance or suggest a rationale that might be persuasive if circumstances in future cases are similar.

In this context, option C accurately captures the essence of persuasive precedent because it highlights that obiter dicta can influence a judgment, even though they do not have the authority to compel a court to follow them strictly.

Regarding the other options, a binding decision from a higher court refers to binding precedent, which courts must follow, while a case that must be followed in all situations implies rigidity typically associated with binding precedent. A precedent set in a foreign jurisdiction is an example of persuasive precedent, but it is not limited to that context, making option C a more comprehensive choice.