---
title: "Draft an offer of compromise or without-prejudice costs letter from the approved figures"
url: "https://ailawframework.com/obligations/costs-billing-and-litigation-funding/draft-an-offer-of-compromise-or-without-prejudice-costs-letter-from-the"
type: "task"
site: "AI Law Framework"
id: "A42-A20260923-3"
practice_area: "Costs, billing & litigation funding"
tier: "yellow"
lawyer_review: "required"
last_reviewed: "2026-10-22"
---

# Draft an offer of compromise or without-prejudice costs letter from the approved figures

> Produce a first-draft offer letter from the lawyer's approved figure, the costs-rule heading and the deadline.

Canonical page: https://ailawframework.com/obligations/costs-billing-and-litigation-funding/draft-an-offer-of-compromise-or-without-prejudice-costs-letter-from-the  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Costs, billing & litigation funding](https://ailawframework.com/obligations/costs-billing-and-litigation-funding.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Produce a first-draft offer letter from the lawyer's approved figure, the costs-rule heading and the deadline. |
| What the lawyer must review | Check the form and timing of the offer, which affect costs consequences Do not send a generated offer |
| Written for / versions | 1 jurisdiction versions below |

## Checking plan

Form and timing of offers affect costs consequences. Do not send a generated offer.

- What the AI does: Produce a first-draft offer letter from the lawyer's approved figure, the costs-rule heading and the deadline.
- What the lawyer does: Set the scope, verify the evidence, resolve exceptions and approve the final output for its intended use.
- Basis: Suggested checking approach based on the task guidance. Complete the assessment for the actual tool, information and jurisdiction.

## Checks the lawyer makes

1. Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
2. Verify every relied-on citation, figure and name against the source document.
3. The responsible lawyer approves the exact version before use.

## Sources

- [Harvey: How to Write a Demand Letter Using AI](https://www.harvey.ai/blog/ai-demand-letter) (checked 2026-09-23)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Without prejudice save as to costs offer, with the client's settlement figures kept off the letter](https://ailawframework.com/precedents/costs-billing-and-litigation-funding/calderbank-costs-offer.md) | Letter | Yellow | Letter of offer made without prejudice except as to costs, using only figures the principal has approved, plus a separate note of the costs estimates to give the client before a litigious settlement… |
| [Offer of compromise under UCPR rule 20.26 (NSW)](https://ailawframework.com/precedents/costs-billing-and-litigation-funding/nsw-offer-of-compromise.md) | Court document | Yellow | Notice of offer of compromise for proceedings under the Uniform Civil Procedure Rules 2005 (NSW), with the rule 20.26 requirements set out so the principal can see if the notice meets them. |

Signed-in accounts can read the full text of each one.

## Jurisdiction versions

| Jurisdiction | Level |
| --- | --- |
| [United States](https://ailawframework.com/obligations/costs-billing-and-litigation-funding/draft-an-offer-of-compromise-or-without-prejudice-costs-letter-from-the/united-states.md) | Red |

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*