What is the test for "without prejudice" in a letter?
Nova Scotia, Canada
The following excerpt is from Director of Assessment v. Begg, 1986 CanLII 3930 (NS SC):
This proposition was stated by Lindley L.J. in Walker v. Wilsher (1889), 23 Q.B. 335 at p. 337: What is the meaning of the words "without prejudice"? I think they mean without prejudice to the position of the writer of the letter if the terms he proposes are not accepted. If the terms proposed in the letter are accepted a complete contract is established, and the letter, although written without prejudice, operates to alter the old state of things and to establish a new one. A contract is constituted in respect of which relief by way of damages or specific performance would be given.
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