When a Part 36 offer is accepted, how are costs for the claimant determined if not agreed?

• A. D pays C's costs on a standard basis to be assessed if not agreed.
• B. D pays C's costs on a fixed 10 percent of damages.
• C. D pays C's costs on an indemnity basis automatically.
• D. D pays C's costs as per the claimant's usual rate.

Answer: (A)

Part 36 offers are designed to settle cases with predictable costs consequences. When such an offer is accepted, the party who made the offer pays the other side’s costs on the standard basis. Those costs are recoverable as normal costs and will be paid by the paying party; if the amount isn’t agreed, the costs will be assessed in the usual way (taxed or checked by the court). This is distinct from indemnity costs or any fixed percentage, which do not apply simply because the offer was accepted.