If you’ve ever received a letter with the words “WITHOUT PREJUDICE” in bold at the top - here’s what it really means:
It’s a legal way of saying:
"Let’s talk settlement - but you are not allowed to use this discussion against me in court later."
In other words, if you’re negotiating or trying to resolve a dispute, anything you say “without prejudice” cannot be used as evidence if the matter ends up in court.
Why does this matter to you as a business owner?
Because disputes are a part of business. And sometimes you just want to resolve them without admitting fault and exposing yourself to liability down the road.
Examples of situations where you can label correspondence “without prejudice”:
- Offering a discount to settle a dispute
- Proposing a payment plan
- Trying to resolve an issue amicably without admitting that it's your fault.
Do keep in mind:
- Don’t use it randomly. Only when you’re genuinely trying to settle
- It won’t protect you if you say something illegal or threatening.
- Put it in writing. Verbally stating "this conversation is without prejudice" may not effectively protect you.
Rudi Cheu (rudi@rulecolaw.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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