I had a go, but i couldn't really fit in obiter dicta and persuasive precedent. Will this matter?
It is through the doctrine of precedent, which is a system used by the courts to ensure that similar cases are dealt with by similar law or in a similar fashion; that the courts are able to make law. Common law or precedent made by the courts is made by ratio decidendi statements given by judges in their law reports, which explain the legal reasoning behind their decision. Through the principle of stare decisis, precedent can only be set by a higher court or a court of ‘superior record’; and those precedents set in courts of superior record are binding on the all similar cases in courts beneath them. In order to ensure that the law made by the courts does not become too rigid and old, there are a number of approaches judges can take when dealing with precedent. Judges can distinguish the facts between a case and a previous case, allowing the judge to create a precedent of their own, without being bound by precedent. Where judges are bound by precedent, they can disapprove of the precedent if they disagree with it, which can influence judges in higher courts to change the law. Judges can overrule the precedent of a lower court; if they believe that the earlier case had been wrongfully decided; clearing the old precedent for a new precedent. When a case is appealed to a higher court, a judge can also reverse the decision and form a new precedent.
Law can also be made by the courts through the hearing of a novel (new) case, as well as through the interpretation of Legislation, which can both result in precedents or common law being created by the courts.