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'Obiter dictum' refers to comments or statements made by a judge in a legal opinion that are not essential to the decision in the case. While such remarks may provide insight or additional context, they do not possess the same weight as the core legal findings necessary to arrive at the judgment. This is important because while obiter dictum may be persuasive or informative in future cases, it does not have binding authority. Understanding this term is crucial for legal practitioners, as it helps distinguish between authoritative legal rulings and supplementary commentary within judicial opinions.

The other choices reflect distinct legal concepts: legally binding precedents are rulings that bind lower courts; formal rulings by appellate courts are decisions that resolve the disputes before them; and administrative guidelines issued by the court are directives that help in the management of court proceedings. Each of these options serves a different purpose within the legal framework and is not indicative of the meaning or significance of obiter dictum.