(1) When used in a document or letter, without prejudice means that what follows (a) cannot be used as evidence in a court case, (b) cannot be taken as the signatory's last word on the subject matter, and (c) cannot be used as a precedent. Contents of such documents normally cannot be disclosed to the courts but, when a party proposes to settle a dispute out-of-court, it is the genuineness of the effort that determines whether the proposal can disclosed or not, and not whether the words without prejudice were used.
(2) When a court case is dismissed, or a court order is issued without prejudice, it means that a new case may be brought or a new order issued on the same basis as the dismissed case or the original order.
Use without prejudice in a sentence
You must always make every decision without prejudice so that you are making the smartest decisions based on the facts.
Since his legal charges had been dismissed without prejudice the courts reinstated them when he got involved in more trouble.
We had to make sure to conduct the hiring process without prejudice, so we would be able to make decisions that did not have any bias to them.