This letter can be marked without prejudice. This guide examines the issues that parties to a dispute should consider when seeking to negotiate terms of settlement.A party is not required to label a correspondence "without prejudice" to receive settlement privilege protection. By marking the offer "without prejudice," they ensure the court will not hear about the settlement offer unless both parties agree to its disclosure. A without prejudice letter is a communication between the parties, made for the purpose of settling a dispute. "Without Prejudice" represent a genuine attempt to settle a dispute and will (generally) be prevented from being presented to the court to prove facts. The purpose is to enable parties engaged in an attempt to compromise litigation to communicate with one another freely and without the embarrassment. The WP Rule governs the admissibility of certain communications into evidence. "Without Prejudice" means you may file a new claim for the same matter. You may dismiss the entire case or some of the defendants using this form.