I believe that it is usually done by, when you have turned off the phone, a combination of turning on, whilst holding the volume down (or up) button at the same time (you must usually hold the volume button the whole time and the phone will vibrate eratically and then go to the bootloader mode (from memory) - one of the options should be to factory reset the phone.
I am not 100% sure though... I am sure that someone in the Samsung Galaxy Precedent - Android Forums sub-forum will be able to give you better advice (I do not have the precednet myself)!
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