How to use the N242A builder
- Enter the claim. Enter the court, the claim number and the parties, with references. Leave the court blank if proceedings have not started.
- Describe the offer. Choose what it settles, whether it is a claimant’s or a defendant’s offer, the party making it, and the offeree with its address.
- Enter the sum. For a money offer, enter the sum. The builder suggests the wording, including how interest is treated, and you can edit it.
- Answer the counterclaim and injury questions. Say whether the offer takes any counterclaim into account and, in a personal injury claim, deal with provisional damages and recoverable benefits.
- Set the relevant period and service. Enter the relevant period, at least 21 days, and when and how the offer will be served. The builder shows when it is made and when the period ends.
- Sign and download. Add the name and date, download the filled N242A, check it, sign it and serve it. The notice of acceptance on page 5 can be filled in ready for the offeree.
What a Part 36 offer must contain
A Part 36 offer must (CPR 36.5(1)):
- be in writing;
- make clear that it is made under Part 36;
- 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;
- state whether it relates to the whole of the claim, to part of it or to an issue that arises in it, and if so to which part or issue; and
- state whether it takes into account any counterclaim.
The 21-day period is not needed where the offer is made less than 21 days before the start of a trial (CPR 36.5(2)); the relevant period then runs to the end of the trial (CPR 36.3(g)). An offer may relate to an issue, such as liability (CPR 36.2(3)). Form N242A has a box for each of these, and its notes say which kind of offer each party makes on a counterclaim, an appeal or a detailed assessment. Part 36 applies to an appeal or cross-appeal only where it is from a decision made at a trial (CPR 36.2(3)(b)), and there the ‘trial’ is the appeal hearing (CPR 36.4(2)).
When it is made, and interest
A Part 36 offer may be made at any time, including before proceedings start, and it is made when it is served on the offeree (CPR 36.7), on the deemed date of service: the same day for an email sent before 4.30pm on a business day, otherwise the next business day, and for first class post the second day after posting if that is a business day, or else the next business day (CPR 6.26). Email is good service only if the offeree has said in writing that it accepts it (PD 6A para 4.1). An offer to pay or accept a sum of money is treated as inclusive of all interest until the relevant period expires (CPR 36.5(4)); a claimant’s offer that makes no provision for interest after that is treated, if accepted later, as inclusive of all interest to the date of acceptance (CPR 36.5(5)). A defendant’s money offer must be a single sum payable within 14 days of acceptance (CPR 36.6). The builder works out the dates from the date and method of service; to count any other time limit, use the CPR deadline calculator.
Part 36 offers in detailed assessment
Part 36 applies to the costs of detailed assessment proceedings, with modifications (CPR 47.20), so a well-judged offer on the bill can decide who pays the costs of the assessment. The receiving party makes a claimant’s offer and the paying party a defendant’s offer, and the ‘trial’ is the detailed assessment hearing (CPR 47.20(4)). Under Practice Direction 47 para 19 the offer should say whether it is intended to include the costs of preparing the bill and VAT; unless it says otherwise, it is treated as including them. To see the whole timetable, use the detailed assessment deadline calculator.
Personal injury claims
Page 3 of the form deals with damages for personal injury. Where there is a claim for provisional damages, the offer must say whether it includes an award of provisional damages and, if it does, that it assumes the claimant will not develop the disease or suffer the type of deterioration specified in the offer, and the period within which any claim for further damages must be made (CPR 36.19(2) and (3)); if it is accepted, the claimant must apply for the award within 7 days (CPR 36.19(5)). A defendant must also say, where relevant, whether the offer is made without regard to any liability for recoverable benefits or is intended to include deductible amounts; if it includes them, the offer states the gross compensation, each deduction and the net sum, and the defendant must apply for a certificate of recoverable benefits before making the offer, and clarify the offer within 7 days of receiving the certificate if it arrives later (CPR 36.20). The 2015 form still refers to rule 36.22 for this; the rules were renumbered in 2023.
After the offer is served
The offeree may ask for clarification within 7 days of the offer being made (CPR 36.8), and accepts by serving written notice of acceptance (CPR 36.11); page 5 of the form is a notice of acceptance for the purpose. If an offer on the whole claim is accepted within the relevant period, the claimant is entitled to its costs up to the date notice of acceptance is served (CPR 36.13(1)), or to the fixed costs in a claim to which Part 45 Section VI, VII or VIII applies (CPR 36.23). The court decides the costs, unless they are agreed, if the offer was made less than 21 days before trial, does not relate to the whole claim, or is accepted after the relevant period; on a late acceptance of an offer on the whole claim it will usually give the claimant its costs to the end of the relevant period and the offeree will pay the offeror’s costs after that (CPR 36.13(4) and (5)). If the offer is not accepted and the result at trial is at least as advantageous to the offeror, the consequences in CPR 36.17 follow, unless the offer was made less than 21 days before trial and the court has not abridged the relevant period (CPR 36.17(7)(c)): work them out with the free Part 36 calculator.
Related guides and tools
- The terms, defined: Part 36 offer and its costs consequences
- Every costs form explained: our costs forms and precedents guide
- Related free tools: the Part 36 calculator, the interest on costs calculator and the deemed service calculator
- Late acceptance of a Part 36 offer and the CPR 36.17 uplift
Sources
- Form N242A: notice of offer to settle, Section I of Part 36 (HMCTS, GOV.UK)
- CPR Part 36 (rules 36.2 to 36.11, 36.13, 36.14, 36.17, 36.19, 36.20 and 36.23)
- CPR Part 27 (rule 27.2, the small claims track)
- CPR Part 47 (rule 47.20) and Practice Direction 47 (para 19)
- CPR Part 6 (rule 6.26, deemed service)