Offers of compromise should not refer to costs "as agreed or assessed"

In brief - Correctly phrased offers of compromise provide almost certain award of indemnity costs

Offers of compromise, pursuant to rule 20.26 of the Uniform Civil Procedure Rules 2005 (NSW) (UCPR), are often used as a tool by both plaintiffs and defendants in encouraging early settlement negotiations, given the potentially adverse costs implications if the matter is run to a hearing and a better outcome is not achieved.

Offers of compromise also serve as an effective mechanism for costs protection when dealing with an "unreasonable" opponent. If made correctly, an offer of compromise provides an almost certain award of indemnity costs from the day following the date of service.