If the defendant admits the whole claim and pays within 14 days, what happens to costs?

• A. The costs liability is limited to fixed sums
• B. The claimant pays the defendant's costs
• C. The defendant pays all costs
• D. There is no change to costs

Answer: (A)

When a defendant accepts the whole claim and pays within the 14-day window, the costs outcome is governed by fixed-cost rules. In this scenario the claimant can recover only fixed sums for costs, rather than the full, assessed costs they might otherwise claim. This streamlines and speeds up the process by discouraging lengthy recovery battles and encouraging early settlement. Because of this, the defendant isn’t liable for all costs, and there is a defined fixed amount the claimant can recover. The other options don’t fit because they imply different cost consequences or no change; the established rule is that costs are capped at fixed sums under these early admission circumstances.