Precedent transferability evaluates how far a past investment judgment applies now: which conditions still hold, which changed, and whether the original outcome supports reuse.
Similarity is not transferability
Two deals can share a sector, size band, and structure while the conditions that justified the original judgment are gone.
Similarity search finds resemblance. Transferability asks whether reuse is still warranted.
Precedent Transferability Test
- Which core conditions still hold?
- Which conditions changed?
- What was the outcome of the past judgment?
- Did the outcome support or contradict that judgment?
- What failure conditions would invalidate reuse?
- Has the past judgment been superseded?
What still holds vs what changed
Split the record. Keep conditions that remain true separate from conditions that drifted. Reuse what still fits. Hold back what does not.
Transfer caution
Transfer caution states why a precedent should not be applied wholesale. Skip it, and old judgment turns into a shortcut — especially on repeated add-ons, where pattern-matching comes easy.