When To Rely On The "Without Prejudice" Rule?

The "Without Prejudice" Rule: When to Use It and How It Protects Settlement Discussions from Court Proceedings

When we see the words "without prejudice" written on legal documents, what does it really mean? These two words have a large effect and yet can easily lead to confusion and misuse.

1. When to use a without prejudice letter?
2. What are exceptions to the without prejudice rule?
3. What is the without prejudice obligation?
4. What is the goal of without prejudice?

In essence, when parties attempt to resolve a dispute, they often mark their written and verbal communications "without prejudice". The without prejudice ("WP") principle or rule exists to encourage settlement discussions between parties. It protects WP materials from being used as evidence against the party making the statement.