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Where there is a dispute between two parties, for example an allegation of discrimination, and there are negotiations taking place with a view to settlement of the dispute, a letter from one party making a settlement offer to the other party should be clearly marked "without prejudice".
Where do I put the words "without prejudice" on a document or email? There are no rules about this but generally, at the top of any document or in the subject line etc - so that it is instantly clear to the reader.
A without prejudice clause in a contract ensures that each party in the contract maintains their legal rights and privileges. Neither party will have a loss of rights.
The without prejudice (WP) rule will generally prevent statements made in a genuine attempt to settle an existing dispute, whether made in writing or orally, from being put before the court as evidence of admissions against the interest of the party which made them.