If a Part 36 offer has been accepted, what is true about withdrawal or amendment?

If a Part 36 offer has been accepted, what is true about withdrawal or amendment?

• A. The offer can be withdrawn at any time.
• B. Once notice of acceptance is served, the offer cannot be withdrawn or amended.
• C. The acceptance nullifies the settlement.
• D. The offer must be re-offered.

Answer: (B)

Once a Part 36 offer is accepted and notice of that acceptance is served, a binding settlement is created on the terms of the offer. The purpose of Part 36 is to encourage settlement, so once the offeree has chosen to accept, the deal is fixed and the offeror cannot withdraw or amend those terms. The acceptance is effectively a contract to settle. That’s why this is correct: after acceptance, withdrawal or alteration would undermine the settled agreement, which the mechanism is designed to prevent. The other statements don’t fit with how Part 36 operates—withdrawal is not allowed once acceptance has been served, and there’s no need to re-offer the terms or to imply the settlement is nullified.

Once a Part 36 offer is accepted and notice of that acceptance is served, a binding settlement is created on the terms of the offer. The purpose of Part 36 is to encourage settlement, so once the offeree has chosen to accept, the deal is fixed and the offeror cannot withdraw or amend those terms. The acceptance is effectively a contract to settle.

That’s why this is correct: after acceptance, withdrawal or alteration would undermine the settled agreement, which the mechanism is designed to prevent. The other statements don’t fit with how Part 36 operates—withdrawal is not allowed once acceptance has been served, and there’s no need to re-offer the terms or to imply the settlement is nullified.