Settlement Negotiations Without Prejudice
Description
How to fill out Memo Regarding Settlement Negotiations?
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FAQ
The "without prejudice" rule allows parties to conduct negotiations to settle an action without having statements made in those negotiations used against them in that action, or any subsequent related action.
Simply put, the contents of a letter titled with ?without prejudice? cannot be used against the writer of the letter if the terms proposed by the writer are not accepted by the other party.
The term "without prejudice" plays an imperative role in commercial contracts, as it provides protection to the party from the admissions/contradictions made in the written correspondence in a manner that no rights or privileges are waived or lost.
The basic meaning of 'without prejudice' is that statements made in the settlement of an existing dispute cannot be relied upon as evidence against the interests of the relevant party if negotiations fail and the parties then have to formally engage in a dispute resolution procedure.
In general, a party's admission to something can be used against them in court. The without prejudice (WP) rule means that statements which are made in a genuine attempt to settle a dispute cannot be used in court as evidence of admissions against the party that made them.
