In a business letter is it best to use "Without Prejudice" as a heading - if so where should it be located. Alternatively, is it better to include it within the body of the letter.
If in the course of litigation, a lawyer for one side determines that their client will be best served by settling the case on some specified terms, they will advise and obtain instructions to make a settlement proposal. Thereby the client authorizes the lawyer to write to the other side and propose to settle for a certain amount. The lawyer writes “Without Prejudice” at the top of the letter to remind the other lawyer that if the offer to settle is rejected, the proposal is off the table and the rejecting party cannot use the offer to suggest that the offering party admits they were wrong.