by 
The Curious Bag
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Probable cause exists when law enforcement have knowledge of sufficient facts to reasonably believe that a crime has been committed.
Generally
Probable cause requires objective facts that would lead a reasonable, unbiased person to believe that a crime has been committed.
Limitations
Probable cause can not be based simply on hunch or speculation, though it can be based on hearsay or circumstantial evidence.
Types
There is no specific requirement regarding the type of facts and evidence necessary to establish probable cause. Probable cause may, for example, be based on the testimony of one or more credible witnesses, or some physical evidence, or a police officer's perception of an event.
Significance
Probable cause is required for police to obtain a search warrant, or conduct a search or seizure (arrest) without a search warrant.
Considerations
Probable cause lies somewhere between "reasonable suspicion" and "proof beyond a reasonable doubt." It is unique to each circumstance and is based on what is reasonable in that particular circumstance.
Source:
Nolo's Encyclopedia of Everyday Law; Shae Irving, JD and Nolo Editors; 2008
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