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Disclaimer: This is not legal advice. Legislation and case law change. Always consult a qualified solicitor for your specific situation.

UK Law Reference
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Legal Proceedings
Civil Litigation
Updated 2026-05-17

CPR Part 36 Settlement Offer Letter

Make a formal settlement offer under CPR Part 36 with automatic costs consequences if the offer is not beaten at trial.

This template was not drafted by a solicitor.

It is an editorial reference based on the official sources we cite. You are responsible for any document you send. For high-stakes matters (court proceedings, large sums, deportation, criminal allegations, child welfare), have a regulated solicitor review or draft your document.

When to use this template

Use this letter when you wish to make a formal settlement offer that carries statutory costs consequences under CPR Part 36. The offer must be made in writing and must comply with the formal requirements of Part 36 to attract its costs protection. Suitable for claimants and defendants at any stage of proceedings.

When NOT to use this template

Do not use if you wish to make a without-prejudice offer that does not trigger Part 36 costs consequences — use the Without Prejudice Settlement Offer template instead. Do not use for claims covered by fixed-costs regimes where Part 36 operates differently, without taking legal advice.

Legal Basis

Civil Procedure Rules Part 36 (CPR r.36.5 — form and content of Part 36 offer; r.36.17 — costs consequences after judgment). The offer must state it is made pursuant to Part 36, specify the relevant period (not less than 21 days), and state whether it relates to the whole or part of the claim.

Before you send

  • Failing to state that the offer is intended to have the costs consequences of Part 36 — without this the offer is not a valid Part 36 offer
  • Setting a relevant period of less than 21 days, which invalidates the offer
  • Not specifying whether the offer is to settle the whole claim or only a part

Common Mistakes to Avoid

  • Failing to state that the offer is intended to have the costs consequences of Part 36 — without this the offer is not a valid Part 36 offer
  • Setting a relevant period of less than 21 days, which invalidates the offer
  • Not specifying whether the offer is to settle the whole claim or only a part
  • Leaving the offer open without a clear relevant period end date, causing confusion about when Part 36 costs consequences crystallise
  • Including terms that are inconsistent with Part 36 (e.g. conditional on no appeal), which can invalidate the offer

Build Your Letter

Fill in your details

Complete the fields below. Required fields are marked with *.

Letter preview

[YOUR FULL NAME / FIRM NAME]
[YOUR ADDRESS]
[YOUR EMAIL ADDRESS]

[DATE OF LETTER]

[OPPONENT'S NAME / FIRM]
[OPPONENT'S ADDRESS]

---

Dear [SALUTATION (E.G. SIR OR MADAM / MS JONES)],

**PART 36 OFFER — [CLAIM NUMBER OR REFERENCE]**

**[CLAIMANT'S FULL NAME] v [DEFENDANT'S FULL NAME]**

I write on behalf of [NAME OF PARTY MAKING THE OFFER] ("the Offeror"). This letter constitutes a formal offer to settle the above proceedings pursuant to Part 36 of the Civil Procedure Rules 1998.

**The Offer**

The Offeror offers to settle this claim, in its entirety, on the following terms:

The [ROLE OF PARTY PAYING (CLAIMANT / DEFENDANT)] will pay to the [ROLE OF PARTY RECEIVING (CLAIMANT / DEFENDANT)] the sum of **£[OFFER AMOUNT (FIGURES)]** ([OFFER AMOUNT (WORDS)] pounds) in full and final settlement of all claims, counterclaims, and any other matters arising out of or connected with these proceedings.

**Relevant Period**

This offer is open for acceptance for a period of 21 days from the date of service of this letter (the "relevant period"), pursuant to CPR r.36.5(1)(c). The relevant period therefore expires on **[DATE RELEVANT PERIOD EXPIRES (21 DAYS FROM SERVICE)]**.

This offer may be accepted after the relevant period has expired, provided proceedings have not been concluded, subject to the permission of the Court as to costs in accordance with CPR r.36.11(3)(d).

**Costs**

If this offer is accepted within the relevant period, [CLAIMANT'S FULL NAME] will be entitled to costs in accordance with CPR r.36.13.

If this offer is not accepted and the Offeror obtains a judgment at trial that is at least as advantageous as this offer, the costs consequences set out in CPR r.36.17 will apply. These include the possibility that the Offeror will be entitled to indemnity costs from the expiry of the relevant period, together with interest on those costs at up to 10% above base rate, and an additional amount not exceeding £75,000 under CPR r.36.17(4)(d).

**This is a Part 36 Offer**

This offer is intended to have the costs consequences of Part 36 of the Civil Procedure Rules. Nothing in this letter is to be construed as an admission of liability.

Please confirm acceptance in writing by **[DATE RELEVANT PERIOD EXPIRES (21 DAYS FROM SERVICE)]** at the latest.

Yours faithfully,

[YOUR FULL NAME / FIRM NAME]

Unfilled fields appear as [FIELD NAME]. Review the letter carefully before sending. This template is a starting point — adapt it to your specific circumstances.

Related Guides

Frequently asked questions

What is a CPR Part 36 settlement offer?
A CPR Part 36 offer is a formal settlement proposal that triggers specific statutory costs consequences if the offer is not beaten at trial. To be valid, it must be made in writing, state it is made pursuant to Part 36, specify a relevant period of at least 21 days, and clarify whether it settles the whole or part of the claim. If these requirements are met, the offer attracts costs protection under the Civil Procedure Rules.
How long does the relevant period for a Part 36 offer last?
The offer must include a relevant period of not less than 21 days. This period starts from the date the letter is served and ends on a specific expiry date. If the offer is accepted after this period expires, the court’s permission is required regarding costs. Failing to set a clear end date or using a period shorter than 21 days can invalidate the offer and cause confusion about when costs consequences apply.
What are the costs consequences if a Part 36 offer is not beaten at trial?
If the offer is not accepted and the offeror obtains a judgment at least as advantageous as the offer, specific costs consequences apply. The offeror may be entitled to indemnity costs from the expiry of the relevant period. Additionally, interest on those costs can be up to 10% above the base rate, and an extra amount not exceeding £75,000 may be awarded under the rules.
When should I avoid using a Part 36 offer?
You should not use a Part 36 offer if you want to make a without-prejudice offer that does not trigger statutory costs consequences; a different template is required for that. Additionally, you should avoid using this format for claims covered by fixed-costs regimes without taking legal advice, as Part 36 operates differently in those specific circumstances.
What are the common mistakes that can invalidate a Part 36 offer?
Common errors include failing to state that the offer is intended to have Part 36 costs consequences, setting a relevant period of less than 21 days, or not specifying whether the offer settles the whole claim or only a part. Including terms inconsistent with Part 36, such as conditions regarding appeals, can also invalidate the offer. These mistakes prevent the offer from attracting the intended costs protection.