What Does “Without Prejudice” Mean in a Contract?
A phrase meaning that an action or statement won't negatively affect or waive existing rights.
Detailed Explanation
"Without prejudice" protects rights when taking an action that might otherwise be seen as giving them up. If you accept a late payment "without prejudice," you're not waiving your right to complain about future late payments or to enforce the original terms.
In negotiations, communications marked "without prejudice" generally can't be used in court - they're meant to encourage settlement discussions without fear that offers will be used against you.
Example in a Contract
“Company's acceptance of Contractor's late deliverable is without prejudice to Company's rights under Section 6.2, including the right to terminate for repeated delays.”
Why It Matters
Using "without prejudice" preserves your options. Without this protection, accepting a deviation from the contract might be seen as modifying the agreement or waiving your right to enforce the original terms.
Related Terms
Have a Clause with “Without Prejudice”?
Paste your contract clause below for instant AI analysis. Get risk assessment, plain English explanation, and suggested improvements.