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In law, the phrase without prejudice means that a claim, lawsuit, or proceeding has been brought to a temporary end but that no legal rights or privileges have been determined, waived or lost by the result. For example, if a party brings a lawsuit in small claims court but discovers that the claim is greater than the amount for that court to have jurisdiction, the lawsuit can be dismissed "without prejudice." This means that the dismissal is no bar to bringing a new lawsuit in a court that does have jurisdiction.

By contrast, with prejudice means that a party's legal rights have in fact been determined and lost. To continue the same example, if instead the court had jurisdiction, but the plaintiff did not appear for the trial, the court would dismiss the case "with prejudice." That dismissal is a judgment against the plaintiff "on the merits" of the case and extinguishes the claim that was being sued over. However, this does not prevent an appeal or a trial de novo if ordered by a higher court.

In many common law jurisdictions such as the UK, Ireland, Canada, Australia, New Zealand and Singapore, the term "without prejudice" is also used in the course of negotiations to indicate that a particular conversation or letter is not to be tendered as evidence in court. Such correspondences must be made in the course of negotiations and must be a genuine attempt to settle a dispute between the parties. It may not be used as a façade to conceal facts or evidence from the court and as such a document marked "without prejudice" that does not actually contain any offer of settlement can be submitted should the matter proceed to court. Courts may also decide to exclude from evidence communications not marked "without prejudice" that do contain offers of settlement.[1][2]

The term "without prejudice save as to costs" is a modification to the above and refers to a communication that cannot be exhibited in court until the end of the trial when the court awards costs to the successful party.

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