What does reversal mean in a legal context?

In a legal context, reversal refers specifically to the annulment of a lower court's decision by a higher court. This means that the higher court finds that the lower court made an error in its ruling and therefore nullifies that ruling. The significance of this process is that it can fundamentally change the outcome of a case. The higher court may then remand the case back to the lower court for further proceedings consistent with its findings.

The other options do not accurately describe reversal. The approval of a lower court's decision would instead be seen as an affirmation, not a reversal. A modification of a ruling by the same court does not entail a reversal but rather a change in the court's own decision. The extension of a court order pertains to the continuation of an existing directive rather than the nullification of a decision. Hence, understanding that reversal specifically means to annul a prior decision is crucial in legal terminology.