If a Part 36 offer states that it is automatically withdrawn on a date, what is the consequence?

• A. The offer becomes binding.
• B. The advantages of CPR Part 36 will be lost.
• C. The offer is automatically extended.
• D. The offer is automatically accepted.

Answer: (B)

The main idea being tested is how Part 36 offers operate and what happens if such an offer ceases to be a Part 36 offer. Part 36 offers come with special costs consequences designed to encourage settlement. Those advantages apply only while the offer remains valid under CPR Part 36. If the offer says it is automatically withdrawn on a date, it stops being a Part 36 offer from that date onward. As a result, the specific Part 36 costs incentives—such as potential enhanced costs for the winner or indemnity-style costs for the loser if the offer is not beaten—no longer apply. The case then proceeds under ordinary costs rules, with no Part 36 benefits available.