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Settlement Agreement – What does Without Prejudice and Subject to Contract mean? (Part 11)

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31st March 2023

In settlement agreements, "Without prejudice" is a legal term that is often used in negotiations to indicate that a statement or offer is being made without any admissions of liability or fault. It also means that the statement or offer cannot be used as evidence in court if the negotiations do not result in a settlement.

"Subject to contract" means that the agreement being discussed is not legally binding until a formal contract is signed. It indicates that the parties are still in the process of negotiating the terms of the contract, and that nothing is final until the contract is executed.

Therefore, until the settlement agreement is signed by all the parties, it won’t be binding.

If you have any questions concerning a settlement agreement, please contact Noel McNicholas on 01926 887700 or