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Form N242A UK: Part 36 Offer to Settle Guide

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Part ofCounty Court Forms UK

Written by Brad Askew Solicitor (non-practising)
Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice.
Updated June 2026 · England & Wales
Litigation is expensive, slow, and draining. That is why the Civil Procedure Rules build in a mechanism designed to push parties towards sensible settlement before a judge is ever asked to rule. Form N242A is the standard way to make what lawyers call a Part 36 offer: a formal written proposal to settle a claim, counterclaim, appeal, or detailed costs assessment. Get it right and you can secure significant costs protection if the other side refuses and later does worse at trial. Get it wrong and the offer may carry none of the punch you intended. This guide walks through what the form does, when it makes sense to use it, and the key rules that make a Part 36 offer bite. It is written for claimants, defendants, and anyone supporting a party in civil proceedings in England and Wales.

What this document is

Form N242A is the court form used to set out a Part 36 offer, named after Part 36 of the Civil Procedure Rules 1998. It is not a document that has to be filed at court to take effect, it is served on the other party to the dispute.

What makes a Part 36 offer different from an ordinary 'without prejudice' offer is the costs regime attached to it. If an offer is properly made on Form N242A and the receiving party rejects it, but then fails to beat the offer at trial, the court will normally order significant costs consequences against them.

That can include paying the offeror's costs on the indemnity basis from the end of the relevant period, plus interest and an additional amount. The form can be used for the whole claim or part of it, for issues on appeal, and for detailed costs assessment proceedings. It has specific sections dealing with personal injury, provisional damages, and deductible benefits under social security legislation.

How to use this document

  1. Decide what you are offering and who it binds. Before filling in the form, work out whether you are settling the entire claim, a particular issue, or a counterclaim. Identify the offeror and offeree clearly, and confirm the claim number and court. A Part 36 offer can come from either side, and either can accept it, so be precise about scope.
  2. Complete Section 1 of Form N242A in full. Enter the names of the claimant and defendant exactly as they appear on the claim form, include the case reference, and tick the boxes that reflect what the offer covers. Set out the sum being offered or the non-monetary terms proposed. Ambiguity here is often what causes Part 36 offers to fail their purpose, so be specific.
  3. Set the relevant period at 21 days or more. The offer must give the receiving party at least 21 days to accept, known as the relevant period. This is the window during which the offeror remains responsible for the offeree's costs if the offer is accepted. A shorter period will not meet the Part 36 test, although the offer may still be treated as a general settlement offer.
  4. Address personal injury and benefits if relevant. If the claim involves personal injury, indicate whether the offer is made in full and final settlement and whether provisional damages are included. A defendant making the offer must also state whether any recoverable benefits under the Social Security (Recovery of Benefits) Act 1997 have been deducted, and if so, the gross amount and how much has been taken off.
  5. Sign, date, and serve the form on the other side. The offeror (or their legal representative) signs and serves the completed form on every other party affected by the offer. Keep proof of service. The offer takes effect once received. It can be accepted at any time until it is formally withdrawn, even after the relevant period ends, although the costs position changes once that window closes.

Common questions

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Common questions

Q What happens if the other side rejects my Part 36 offer and I do better at trial?
If you are a claimant and the judgment at trial is at least as good as your offer, the court will usually order the defendant to pay interest on the sum awarded, your costs on the indemnity basis from the end of the relevant period, interest on those costs, and an additional amount subject to a statutory cap. For defendants, the consequences are different but still significant. The regime is designed to reward realistic offers and punish parties who push cases to trial unnecessarily.
Q Can I withdraw a Part 36 offer once it has been made?
Yes, but the rules are strict. During the relevant period, an offer cannot generally be withdrawn or made less favourable without the court's permission. Once the relevant period has expired, the offeror can serve written notice withdrawing or changing the offer, provided it has not already been accepted. If you withdraw before expiry without permission, the costs protection attached to Part 36 is lost.
Q Does a Part 36 offer have to use Form N242A?
No. A Part 36 offer only has to be in writing and meet the requirements set out in Part 36 of the Civil Procedure Rules. Form N242A is the standard template and using it reduces the risk of missing a technical requirement. Offers that fail to comply with Part 36 may still have some weight as ordinary settlement offers, but they will not carry the automatic costs consequences Part 36 creates.
Q Is a Part 36 offer confidential?
A Part 36 offer is treated as 'without prejudice save as to costs'. That means the trial judge is not told about the offer while deciding liability and quantum. It is only disclosed once the judgment is given and the court turns to the question of costs. This protects the fairness of the trial while still allowing the costs regime to work.
Q Can Part 36 be used in the small claims track?
Part 36 technically applies across the civil courts, but its costs consequences are heavily restricted in the small claims track because costs recovery there is limited in the first place. In practice, Part 36 is most powerful in the fast track, intermediate track, and multi-track, where the costs at stake make the consequences of beating or failing to beat an offer material.
Q What is the 'additional amount' a claimant may receive?
Where a claimant makes a Part 36 offer that the defendant fails to beat at trial, the court will normally award an additional amount on top of the judgment sum. It is calculated as a percentage of the damages or costs awarded, subject to a statutory cap. The exact figures and cap are set out in the Civil Procedure Rules, so check the current rules for the precise percentages and maximums that apply.
Q Do I need a solicitor to make a Part 36 offer?
No, litigants in person can make Part 36 offers using Form N242A. However, the rules are technical and the cost consequences of getting it wrong are real. If the sum in dispute is significant or the facts are complex, taking guidance before you serve the offer is sensible. A poorly drafted offer may fail to trigger the Part 36 regime even though it looks right on the page.
If you're dealing with this kind of situation, speak to an experienced legal adviser who can walk you through it — from £89.

Sources

This guide is based on primary UK law and official guidance.

Brad Askew, Solicitor (non-practising)

Written & reviewed by

Brad Askew Solicitor (non-practising)

Brad is on the roll of solicitors of England & Wales but does not hold a practising certificate and does not provide legal advice. LegalDocuments.co.uk is not a law firm and does not provide regulated legal advice.

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Legal disclaimer
This article is for general information only. It is a tool to help you find your way — not legal advice, and not a substitute for speaking to a qualified adviser about your situation.