An offer you cannot (or probably should not) refuse: Knowing the difference between Offers of Compromise and Calderbank Offers

Where Court proceedings have already been issued and the parties want to try and resolve the dispute early to avoid legal costs, reduce the uncertainty of the outcome of the proceedings or continue doing business together, an offer of settlement will typically be in the form of either an Offer of Compromise or in a Calderbank offer.

In this article we discuss the characteristics of both types of settlement offers and the strengths and weaknesses of each.

Offer of compromise

An Offer of Compromise is made under the relevant Rules of the Court in which proceedings have commenced. For example, the Supreme Court (General Civil Procedure) Rules 2015 (Rules) will govern Offers of Compromise in proceedings before the Supreme Court of Victoria.