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Letters of demand should not be written on a without prejudice basis. The purpose of a letter of demand is to state the full amount of the claim (so far as it may be known at the date of the letter) rather than to compromise the claim. It may be necessary to prove that the letter of demand was sent.
Without prejudice is a phrase used to evoke a legal privilege attached to written or verbal communication made by a party to a dispute in a genuine attempt to settle that dispute. It is a rule of evidence that parties can have 'without prejudice' discussions to try to settle a dispute out of court.
If you want a settlement communication to be 'without prejudice', you should:write the term clearly at the top of any written correspondence; or.state it at the start of any oral communication.
Checklist: Sending a Letter of Demandclearly state in the letter that you intend to take legal action if they do not pay the debt; clearly state in the letter how the debtor can pay the debt; give a clear date in the letter by which you expect them to pay the debt; and.
1, My client accepts the formal apology without prejudice to any further legal action she may decide to take. 2, We accept the outcome of the inquiry, without prejudice to the unsettled question of territorial waters. 3, The offer was accepted without prejudice to the current pay negotiations.