When do the consequences of a Part 36 offer start?

• A. From the expiry of the relevant period for acceptance unless the parties agree otherwise.
• B. From the date of the offer.
• C. From the date of trial verdict.
• D. From withdrawal date.

Answer: (D)

Part 36 offers are designed to push settlement by linking costs to the outcome, but the costs consequences only kick in if the offer remains open and is not accepted within the allowed period. The starting point is the expiry of the relevant period for accepting the offer (usually 21 days, unless the court or the parties extend it). If the offer isn’t accepted by then, and the eventual judgment is more favourable to the offeree than the offer, the offeree can typically recover enhanced costs from the end of that period. If the offer is accepted within the period, costs are dealt with up to acceptance in light of the offer. If the offer is withdrawn before the period ends, there are no Part 36 consequences. So the correct start point is the expiry of the relevant period for acceptance, unless the parties have agreed otherwise.