The phrase "without prejudice" means that a statement, communication, or document is made during genuine attempts to settle a dispute and cannot be used as evidence against the party who made it in any future court proceedings. It allows parties to negotiate freely and openly without fear that what they say will be held against them if the negotiations fail. The communication marked "without prejudice" is considered confidential and solely for the purpose of dispute resolution, not affecting the legal rights of the party making the statement.

Key Points on "Without Prejudice"

• It applies only if there is an existing dispute and a genuine attempt to resolve that dispute.
• The phrase protects statements and offers made in the course of negotiation from being used as admissions or evidence in court.
• It encourages settlements outside of court by allowing parties to speak freely without the risk of prejudice.
• The phrase must be clearly stated in oral or written communication for protection, though it can sometimes be implied by the context.
• Exceptions exist, such as when criminal conduct is involved, or if both parties agree to waive the privilege.

Thus, "without prejudice" is primarily a legal privilege used to facilitate dispute settlement while safeguarding communications from being used adversely in litigation.