Under without prejudice privilege, which statement is true?

• A. Offers made during settlement negotiations cannot be used as evidence unless consent or settlement
• B. Any negotiation can be used as evidence
• C. Privilege never applies to offers
• D. Offers made on costs cannot be used

Answer: (A)

The key idea here is without prejudice privilege in settlement negotiations. This rule protects communications made during talks aimed at settling a dispute, so they cannot be used as evidence in court to prove liability or the terms of the dispute. The statement that is true reflects that protection: offers made during settlement negotiations cannot be used as evidence unless both sides agree to reveal them or the dispute is actually settled. In other words, the privilege stays in place to keep negotiations frank unless the parties consent or settlement occurs.

Why the others don’t fit: not every negotiation falls under this protection, only those intended to settle a dispute; privilege does apply to offers, it’s not the case that offers are never covered; and while offers to settle can affect costs (under rules like without prejudice save as to costs), that doesn’t mean such offers can never be used at all.