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Without Prejudice: Definition, Example and Related Terms

What does it mean when something is marked Without Prejudice ?

'Without prejudice' is a legal term used in negotiations and communications to indicate that the information shared cannot be used as evidence in court. It serves as a safeguard for parties during negotiations, allowing them to freely discuss and propose terms without fear that their statements or offers will later be used against them if negotiations break down.

In practice, conversations or correspondence marked 'without prejudice' are protected and treated as confidential. This encourages open dialogue and offers more scope for resolving disputes or reaching settlements out of court, as parties can make concessions or compromises without risking legal liability or prejudice to their case.

It's important to note that the 'without prejudice' privilege only applies to genuine attempts to negotiate a settlement. It doesn't cover communications that go beyond this context or any dishonest or fraudulent conduct. Misusing the term could lead to issues if a party tries to submit such communications as evidence.

Understanding the implications of 'without prejudice' is crucial for legal and contractual dealings. It allows parties to negotiate more flexibly and creatively, ultimately facilitating smoother resolution of disagreements. This protective measure is a significant aspect of dispute resolution and contract management.

Example(s)

  • Scenario Description
    During a dispute between a contractor and a client over project delays, both parties agree to conduct 'without prejudice' meetings to discuss potential solutions. These meetings allow both parties to explore settlement options without any risk that their concessions or offers will be presented as admissions in future legal proceedings if talks fail.
    A company receives a letter from a creditor marked 'without prejudice', suggesting a reduced settlement amount for an outstanding debt. The 'without prejudice' label means the proposed amount can't be used as an acknowledgement of the debt's existence or its terms in court, offering a safe space for negotiation.