Without Prejudice


Personalised Agreement


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Without Prejudice


A compromise agreement, whether in draft or signed, should contain the phrase "without prejudice".


  • The main intention for including the phrase during drafting is to enable discussions to take place, and suggestions to be made, without the fear that they can subsequently be used by either party against the other, should the negotiations break down.

  • It's an acknowledgement that the process is taking place in good faith and that both parties intend to reach agreement without recourse to the courts.

  • The agreement itself should contain a standard clause to the effect that the "without prejudice" nature of the document falls away or ceases to have meaning once it has been signed as a binding agreement.

  • An example of such a paragraph "BINDING AGREEMENT" taken from our template is shown below.



This Agreement shall constitute a binding agreement as soon as it is signed by the Company, [EMPLOYEE SHORT NAME] and the Independent Adviser, at which point its without prejudice nature shall fall away.