A legal term applied to negotiations and correspondence with the intention that anything said, or
offers made, are Privileged, and cannot be subject to forced Disclosure in the event of litigation or
Arbitration. This allows the parties and/or their agents to negotiate more freely, and explore the
potential for settlement without making binding offers – i.e. without prejudicing their position in
respect of what may be presented, in e.g. Expert Evidence, if matters become contentious and
subject to formal dispute resolution procedures.