The term “without prejudice” refers to a reservation that is made on a statement or action with the purpose of preventing said statement or action to be used against that party in future deals or litigation.
E.g., Dismissal Without Prejudice: Where a lawsuit is dismissed without prejudice, the plaintiff could later refile the lawsuit asserting the same claims against the same defendant(s).
Castano v. Gabriel, 60 Misc. 2d 218, 221 (N.Y. 1969).
“When a dispute arises between parties and they desire to preserve their respective rights and positions, then such reservation is readily accomplished by the performance of the acts between such parties, where such is done “without prejudice” to the existing controversy. Thus no determinative legal effect is completed; it is reserved for future determination.”