Summary and implications Practitioners and clients alike often receive correspondence which is marked with a heading, such as “without prejudice” or “subject to contract”.
As the market turns, and the number of deals starts to increase, so too will the amount of correspondence exchanged.
The purpose of marking a letter “without prejudice” is to protect the writer so that any concessions made by him in that letter (e.g.
an admission) cannot be relied on by the other party in any court proceedings, i.e.
the letter is written without prejudice to the writer’s position.
It is in the public interest for parties to a dispute to try to resolve the issues between them without the risk that one party can rely on any concessions made by the other if agreement cannot be reached.
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