What is a Part 36 offer?

A Part 36 offer is a formal written offer to settle a UK civil claim made under the strict procedural framework of CPR Part 36. The offer must comply with the form requirements of rule 36.5 — in writing, expressly under Part 36, ≥21-day relevant period, scope, counterclaim treatment. If the offer is not accepted and the offeror does at least as well at trial, the cost consequences under r.36.17 apply automatically unless the court considers them unjust.

How long is the relevant period?

The minimum relevant period under CPR rule 36.5(1)(c) is 21 days. The offeror can specify a longer period; shorter periods are permitted only where the offer is made less than 21 days before trial under r.36.5(2). The relevant period runs from the date of service of the offer letter on the offeree.

Should I mark the letter "Without Prejudice"?

No. A Part 36 offer is an OPEN letter. CPR rule 36.16 imposes a statutory "without prejudice except as to costs" cloak — the offer is excluded from evidence until the question of costs falls to be decided. Marking the letter "Without Prejudice" outside the Part 36 framework would defeat the cost-consequence engine. If you want a Without Prejudice Save as to Costs framework, use the Calderbank v Calderbank [1976] Fam 93 alternative instead.

Can I withdraw a Part 36 offer?

Within the relevant period, a Part 36 offer cannot be withdrawn or varied without the offeree's consent or the court's permission (CPR r.36.9 and r.36.10). Outside the relevant period, the offer can be withdrawn at any time by service of written notice. A withdrawn offer loses its Part 36 cost-consequence protection — if you want to vary the offer terms, the safest approach is to make a fresh Part 36 offer at the new figure.

What is the difference between Part 36 and Calderbank?

A Part 36 offer attracts the automatic cost consequences of r.36.17 if not accepted and the offeror does at least as well at trial. A CALDERBANK offer (named after Calderbank v Calderbank [1976] Fam 93) is a Without Prejudice Save as to Costs offer made outside the Part 36 framework. A Calderbank offer does NOT attract the automatic Part 36 consequences but may still be referred to on costs — the court has discretion. Part 36 is the more powerful mechanism where it applies; Calderbank is the fallback for contexts where Part 36 is unavailable or not preferred.

What is a sealed offer?

A sealed Part 36 offer is one placed before the court in a sealed envelope under CPR r.36.16 read with Part 24. The court does not open the envelope until the question of costs falls to be decided. Sealed offers are sometimes used where the offeror wants the court to know an offer has been made without disclosing the amount during the substantive trial. They are uncommon but useful in certain high-value or sensitive UK civil cases.

Does Part 36 apply in small claims?

Part 36 applies in UK small claims track cases but the cost consequences are limited. CPR r.36.16(8) read with r.27.14 restrict cost recovery in small claims track — the indemnity costs and Jackson uplift consequences do not apply in the usual way. In small claims, a Calderbank offer is often more flexible and equally effective. For multi-track and fast-track claims, Part 36 is the dominant settlement mechanism.

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UK CPR Part 36 Offer Letter

Draft a UK CPR Part 36-compliant offer to settle a civil claim in the courts of England and Wales (with Scottish and Northern Irish parallels). The letter satisfies the strict rule 36.5 form requirements — in writing, expressly stated to be made under Part 36, with a relevant period of not less than 21 days, identifying whether the offer relates to the whole claim or to part of it or to a specific issue, and stating the counterclaim treatment. Expert mode adds the full rule 36.17 cost consequences framework — indemnity costs from the end of the relevant period, interest up to 10% above base rate, and the Jackson uplift of 10% of the first £500,000 + 5% above, capped at £75,000 — plus deductible benefits handling for personal injury claims, the Calderbank alternative reference, and the sealed-offer framework.

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Westbridge Manufacturing Ltd (solicitors: Harker and Lloyd LLP)

14 Industrial Way, Reading RG1 4QX

4 June 2026

Holton Components Ltd (c/o Bates Whitehall Solicitors)

5 Eastpark Trading Estate, Swindon SN5 7TG

RE: Part 36 Offer to Settle — QB-2025-002847

CPR r.36.5 · Relevant period 21 days

Dear Sir / Madam,

OFFER TO SETTLE — THIS OFFER IS MADE UNDER PART 36 OF THE CIVIL PROCEDURE RULES.

This letter is sent in the proceedings The High Court of Justice, Business and Property Courts, King's Bench Division — Claim Number QB-2025-002847 — between the parties.

Claim description: Claim for damages for breach of contract under a supply agreement dated 14 February 2023 — failure to deliver Component Series 4 to specification, causing production downtime and lost margin. Damages claimed: £487,200 plus interest.

Pursuant to CPR rule 36.5(1)(a), this offer is in writing and is expressly made under Part 36 of the Civil Procedure Rules. The Claimant (Westbridge Manufacturing Ltd) hereby offers to settle the claim on the terms set out below.

1. The offer. The Claimant offers £385,000 in satisfaction of the WHOLE of the claim. In accordance with CPR rule 36.5(1)(d) and (e), this offer relates to the WHOLE of the claim and is made in a case where no counterclaim has been pleaded.

2. Relevant period — CPR r.36.5(1)(c). The relevant period for acceptance of this offer is 21 days from the date of service of this letter on the Defendant. The relevant period therefore expires at 23:59 on the day falling 21 clear days after service. The minimum permitted relevant period under CPR r.36.5(1)(c) is 21 days, save where the offer is made less than 21 days before trial under r.36.5(2).

3. Consequences of acceptance — CPR r.36.13. Under CPR rule 36.13(1), where this Part 36 offer is accepted within the relevant period, the Defendant (acting as offeree) is liable for the Claimant's costs up to the date of service of notice of acceptance, on the standard basis. The claim will be stayed on the terms of this offer.

4. Consequences of failing to obtain a more advantageous judgment — CPR r.36.17. If this offer is not accepted within the relevant period and the Claimant equals or betters this offer at trial, the cost consequences under CPR rule 36.17 apply automatically unless the court considers it unjust to apply them. Specifically, the Claimant becomes entitled to (i) interest on the whole or part of any sum of money awarded at a rate not exceeding 10% above base rate; (ii) costs on the indemnity basis from the date on which the relevant period expired; (iii) interest on those costs at a rate not exceeding 10% above base rate; and (iv) an additional sum (the "Jackson uplift") of 10% of the first £500,000 of the awarded amount and 5% of any amount above £500,000, capped at £75,000.

5. Costs, interest, and deductible benefits. 5.1 Costs: This offer is exclusive of costs; costs are reserved to be determined under CPR rule 36.13 or by detailed assessment.

5.2 Interest: The offer takes into account any interest that has accrued on the principal sum claimed up to and including the relevant period expiry date.

6. Acceptance and process. 6.1 Acceptance mechanism: Acceptance is by written notice from the Defendant's solicitors (Bates Whitehall Solicitors) to the Claimant's solicitors (Harker and Lloyd LLP) by first-class post or by email to philip.harker@hl-llp.co.uk within the relevant period.

6.2 Withdrawal: Subject to the rules in CPR 36.9 and 36.10, the Claimant reserves the right to withdraw or change the terms of this offer at any time before acceptance, with such withdrawal being effective on service of notice to that effect on the Defendant's solicitors.

6.3 Request: The offeror requests a substantive response within 5 working days of the relevant period expiry.

7. Additional cost framework.

7.1 Indemnity costs warning. The recipient is warned that failure to accept this offer within the relevant period exposes them to costs on the indemnity basis from the expiry of the relevant period — a materially worse cost position than the standard basis (no rule of proportionality applies; doubt is resolved in favour of the receiving party).

7.2 Jackson uplift — additional sum. Where this is a Claimant's Part 36 offer which is equalled or bettered at trial, the additional sum payable to the Claimant under CPR r.36.17(4)(d) is 10% of the first £500,000 of the awarded amount and 5% of any amount above £500,000, capped at £75,000.

This offer is governed by the law of England and Wales (Civil Procedure Rules Part 36). This letter is served by both first-class post and email. We invite a substantive response within the relevant period.

Yours faithfully,

SIGNED

Westbridge Manufacturing Ltd

Claimant (Part 36 offeror) · 4 June 2026

Date: ____________________

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What Is a UK CPR Part 36 Offer Letter?

A CPR Part 36 offer is a formal written offer to settle a UK civil claim under the strict procedural framework set out in Part 36 of the Civil Procedure Rules. The Part 36 mechanism — applicable in the High Court of Justice (Business and Property Courts, King's Bench Division, Chancery Division), the County Court, the Family Court (in some applications), and other UK civil jurisdictions — gives the offeror powerful automatic cost consequences if the offer is not accepted within the relevant period and the offeror does at least as well at trial. The form requirements are strict: a defect in the offer puts the Part 36 consequences at risk. Rule 36.5 requires the offer to be in writing, expressly stated to be made under Part 36, with a relevant period of not less than 21 days, identifying whether it relates to the whole claim, part of it, or a specific issue, and stating the counterclaim treatment.

The cost consequences under rule 36.17 are the engine of the Part 36 mechanism. Where a UK claimant's Part 36 offer is equalled or bettered at trial, the court must (unless it considers it unjust) order: interest on the awarded sum up to 10% above base rate; the defendant's costs on the indemnity basis from the end of the relevant period (no rule of proportionality applies; doubt is resolved in favour of the receiving party); interest on those costs up to 10% above base rate; and the "Jackson uplift" — an additional sum of 10% of the first £500,000 of the awarded amount and 5% of any amount above £500,000, capped at £75,000. For a defendant's Part 36 offer beaten only by the claimant, the consequences are limited to standard-basis costs from the end of the relevant period and interest on those costs. The mechanism rewards offerors who price their offers realistically; it punishes offerees who reject pragmatic offers.

The letter format is permitted as an alternative to Form N242A under Practice Direction 36A. A well-drafted Part 36 offer letter is an open letter — not "Without Prejudice" — because Part 36 itself includes a statutory "without prejudice except as to costs" cloak under rule 36.16. Where Part 36 does not apply (small claims track, certain family proceedings) or where greater flexibility is preferred, the Calderbank v Calderbank [1976] Fam 93 "Without Prejudice Save as to Costs" framework is the alternative. Sealed Part 36 offers (placed before the court in a sealed envelope under rule 36.16) are sometimes used where the offeror wants the court to know an offer has been made without disclosing the amount. Our template captures all four strands — Part 36, Calderbank, sealed offers, and the cost-consequence framework — in one UKVI-ready open letter for any UK civil case.

What's Covered in This Template

Our UK Part 36 Offer Letter template generates a strictly r.36.5-compliant letter aligned with the cost-consequence framework of r.36.17 and the wider Part 36 ecosystem.

r.36.5(1)(a) — In Writing + Expressly Part 36

The letter expressly states it is made under Part 36 — without this opening, the offer falls outside the Part 36 cost-consequence framework.

r.36.5(1)(c) — Relevant Period ≥ 21 Days

Minimum 21-day acceptance period under r.36.5(1)(c); shorter periods only permitted under r.36.5(2) where the offer is made less than 21 days before trial.

r.36.5(1)(d) — Whole / Part / Specific Issue

Identifies the scope of the offer — whole of the claim, part of it, or a specific issue (e.g. liability only, quantum only).

r.36.5(1)(e) — Counterclaim Treatment

Express statement of whether the offer takes any counterclaim into account, in compliance with r.36.5(1)(e).

r.36.13 Acceptance Consequences

Where the offer is accepted, the offeree pays the offeror's costs up to the date of acceptance on the standard basis; the claim is stayed on the terms of the offer.

r.36.17 Non-Acceptance Consequences

Indemnity costs from end of relevant period + interest up to 10% above base rate + Jackson uplift on damages — automatic unless unjust.

Jackson Uplift £75,000 Cap (Expert)

10% of the first £500,000 of the awarded amount and 5% of any amount above £500,000, capped at £75,000 — Claimant offers only (r.36.17(4)(d)).

r.36.23 Deductible Benefits PI (Expert)

Compensation Recovery Unit (CRU) deductions for recoverable benefits in personal injury claims under the Social Security (Recovery of Benefits) Act 1997.

r.36.9 / r.36.10 Withdrawal (Expert)

Within the relevant period the offer cannot be withdrawn or varied without the offeree's consent; outside the period it can be withdrawn at any time.

Calderbank Alternative (Expert)

Optional reference to the Calderbank v Calderbank [1976] Fam 93 Without Prejudice Save as to Costs framework where Part 36 does not apply.

Sealed Offer Reference (Expert)

Optional reference to the sealed-offer framework under r.36.16 where the offeror wants the court to know without disclosing the amount.

Indemnity-Costs Warning (Expert)

Tactical explicit warning to the offeree of the indemnity-costs exposure — the materially worse cost position than the standard basis.

How to Create a UK Part 36 Offer Letter

Follow these steps to draft a strictly r.36.5-compliant Part 36 offer letter.

1
Enter the Offeror and Offeree Details
Enter your full legal name and address (offeror), your solicitors' details if represented, and the offeree's name, address, and solicitors. The letter is served on the offeree or their solicitors in accordance with CPR rules 6.20 and 6.26 — typically by first-class post or by email where service by email is permitted.
2
Identify the Court and the Claim
Enter the court name (High Court — KBD / ChD / Business and Property Courts; County Court — money / multi-track / fast track), the claim number, and a one-paragraph description of the claim. State whether you are making the offer as Claimant or as Defendant — the cost consequences under CPR r.36.17 differ materially between the two roles.
3
Set the Offer Amount, Scope and Relevant Period
Enter the offer amount in GBP, select the scope (whole of the claim, part of it, or specific issue), provide any scope detail (e.g. "liability only"), enter the relevant period (minimum 21 days under r.36.5(1)(c)), and state the counterclaim treatment. Select the governing jurisdiction (England & Wales, Scotland, or Northern Ireland).
4
Add Costs, Interest and PI Deductible Benefits (Expert)
In Expert mode, state whether the offer is inclusive of costs, whether interest is included, and — for personal injury claims — the CRU deductible benefits position. Set out the acceptance mechanism, the withdrawal provisions under CPR rules 36.9 and 36.10, the requested response timetable, and the preferred service method.
5
Add Calderbank Alternative, Sealed-Offer Reference and Cost Warnings (Expert)
In Expert mode, optionally add references to the Calderbank alternative framework, the sealed-offer mechanism under r.36.16, the indemnity-costs warning, and the Jackson uplift £75,000 reference. These tactical additions make the cost consequences of non-acceptance explicit to the offeree and their advisers.

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Legal Considerations

CPR Part 36 is the most powerful settlement mechanism in UK civil procedure. The form requirements are strict; the cost consequences are automatic; and the framework rewards realistic offerors and punishes unrealistic offerees.

This template is for informational purposes only and does not constitute legal advice. CPR Part 36 is a technical area of UK civil procedure — consult a qualified UK litigation solicitor before relying on this letter, particularly for high-value claims, sealed offers, or specialised claim types (personal injury, defamation, intellectual property).

Reviewed for England & Wales CPR Part 36 (2026 edition)

r.36.5 — The Strict Form Requirements

Rule 36.5 of the Civil Procedure Rules sets out the strict form requirements for a Part 36 offer. The offer must (a) be in writing; (b) make clear that it is made pursuant to Part 36; (c) specify a period of not less than 21 days within which the defendant will be liable for the claimant's costs if the offer is accepted (the "relevant period"); (d) state whether it relates to the whole of the claim or to part of it or to an issue that arises in it and if so to which part or issue; and (e) state whether it takes into account any counterclaim. The letter format is permitted as an alternative to Form N242A under Practice Direction 36A. A defect in any one of these elements puts the Part 36 cost-consequence framework at risk — the court may decline to apply the automatic consequences under r.36.17 if the form requirements are not satisfied.

r.36.17 — The Cost-Consequence Engine

Rule 36.17 governs the cost consequences of failing to obtain a more advantageous judgment than a Part 36 offer. For a CLAIMANT'S offer equalled or bettered at trial, the court must (unless unjust) order: (i) interest on the awarded sum up to 10% above base rate from the end of the relevant period; (ii) costs on the indemnity basis from the end of the relevant period; (iii) interest on those costs up to 10% above base rate; (iv) an additional sum (the "Jackson uplift") of 10% of the first £500,000 of the awarded amount and 5% of any amount above £500,000, capped at £75,000. For a DEFENDANT'S offer beaten only by the claimant, the consequences are limited to standard-basis costs from the end of the relevant period and interest on those costs. The court considers any relevant factor in deciding whether the consequences would be unjust, including what the parties knew at the time of the offer, the parties' conduct in sharing information, and whether the offer was a genuine attempt to settle.

r.36.23 — Personal Injury and Deductible Benefits

Rule 36.23 governs Part 36 offers in personal injury claims where the Compensation Recovery Unit (CRU) is involved. The Social Security (Recovery of Benefits) Act 1997 imposes a duty on UK defendants to deduct recoverable benefits from the compensation paid to a personal injury claimant and to remit those benefits to the CRU. Where the Part 36 offer is in a CRU case, the offer must specify whether it is gross or net of recoverable benefits, and the CRU certificate reference. Our Expert template captures the PI deductible benefits position in a structured field.

Calderbank, Sealed Offers and Tactical Choices

In some UK contexts — small claims track, certain family proceedings, very flexible commercial settlements — the Calderbank v Calderbank [1976] Fam 93 "Without Prejudice Save as to Costs" framework is preferable to Part 36. A Calderbank offer does not attract the automatic Part 36 cost consequences but may still be referred to on the question of costs. SEALED Part 36 offers, placed before the court in a sealed envelope under r.36.16 read with Part 24, are sometimes appropriate where the offeror wants the court to know an offer has been made without disclosing the amount. The decision between Part 36, Calderbank, sealed offers, and ordinary without prejudice negotiations is tactical and depends on the type of claim, the trial track, and the relationship between the parties — qualified UK litigation advice is essential for any significant claim.

Frequently Asked Questions

Draft Your UK Part 36 Offer Letter Now

Use our free template to draft a UK CPR Part 36 offer to settle compliant with rule 36.5 strict form requirements and the rule 36.17 cost-consequence framework — including indemnity costs, Jackson uplift £75,000 cap, deductible benefits in PI claims, Calderbank alternative reference, and the sealed-offer framework — for any UK civil claim in the High Court, County Court, or Family Court.

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