The preclusive effect is a legal doctrine that prevents a party from re-litigating issues that have already been decided in a final judgment in a previous case. This concept is crucial in ensuring that once a legal dispute has been resolved, the parties cannot reopen the same issues, fostering judicial efficiency and stability. It connects closely with the principles of laches, estoppel, and acquiescence as they all deal with the consequences of a party’s prior conduct in relation to their ability to assert claims or defenses in subsequent litigation.