Without Prejudice ... These two words are often used when parties are discussing their respective positions, especially if a claim has arisen, or may arise, yet their actual legal meaning may not always be fully appreciated. English law position Pursuant to English law and practice, the phrase  "Without Prejudice"  is intended to prevent statements made in pursuit of a genuine attempt to settle a dispute from being placed before a court or arbitral tribunal as evidence of admissions made by the party which issued them. Misunderstanding the legal effect of the phrase 'Without Prejudice' Parties regularly begin messages to one another with the words  Without Prejudice . This is often because it is mistakenly believed that titling a message  Without Prejudice  will mean that it is cloaked in impenetrable confidentiality. This misunderstanding can lead to a party disclosing information in a message titled  Without Prejudice  which is then used as evidence against them, much to the sender's surprise and annoyance. As a matter of English law, simply titling a message with the phrase  Without Prejudice  will not stop that message being used by the recipient as evidence. Background to the English legal position Courts and tribunals recognise that it is preferable for commercial parties to resolve disputes between themselves. For parties to be able to resolve disputes they need to be able to negotiate settlement. Effective settlement negotiations would be hampered if offer(s) made in those negations could be used to impugn the legal position of the party which made them. To encourage settlement, genuine offers to settle disputes or correspondence which forms part of genuine offers to settle a dispute cannot be used by the recipient as evidence in that dispute. Documents which cannot be used as evidence are referred to as 'privileged' documents. There are several forms of legal privilege. The form of privilege which applies to offe