plot legends without border and with white background

Use option bty = "n" in legend to remove the box around the legend. For example:

legend(1, 5,
       "This legend text should not be disturbed by the dotted grey lines,\nbut the plotted dots should still be visible",
       bty = "n")

As documented in ?legend you do this like so:

plot(1:10,type = "n")
abline(v=seq(1,10,1), col='grey', lty='dotted')
legend(1, 5, "This legend text should not be disturbed by the dotted grey lines,\nbut the plotted dots should still be visible",box.lwd = 0,box.col = "white",bg = "white")
points(1:10,1:10)

enter image description here

Line breaks are achieved with the new line character \n. Making the points still visible is done simply by changing the order of plotting. Remember that plotting in R is like drawing on a piece of paper: each thing you plot will be placed on top of whatever's currently there.

Note that the legend text is cut off because I made the plot dimensions smaller (windows.options does not exist on all R platforms).