---
title: "Offer of compromise under UCPR rule 20.26 (NSW)"
url: "https://ailawframework.com/precedents/costs-billing-and-litigation-funding/nsw-offer-of-compromise"
type: "precedent"
site: "AI Law Framework"
id: "a42-nsw-offer-of-compromise"
area_id: "A42"
kind: "court-document"
ai_level: "yellow"
version: 1
task_ids: ["A42-A20260923-3"]
law_stated_as_at: "2026-10-22"
---

# Offer of compromise under UCPR rule 20.26 (NSW)

> 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.

Canonical page: https://ailawframework.com/precedents/costs-billing-and-litigation-funding/nsw-offer-of-compromise  
Law stated as at: 2026-10-22

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

## Key facts

- Kind: Court document. A document filed or served in a court or tribunal.
- Practice area: [Costs, billing & litigation funding](https://ailawframework.com/precedents/costs-billing-and-litigation-funding.md)
- Jurisdictions: New South Wales
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the 2 authorities it cites, for New South Wales.

## When to use it

Use only for an offer in proceedings to which the Uniform Civil Procedure Rules 2005 (NSW) apply, after the principal has fixed the orders, the amount and the closing date. Do not describe the offer as inclusive of costs.

## Used for these tasks

- [Draft an offer of compromise or without-prejudice costs letter from the approved figures](https://ailawframework.com/obligations/costs-billing-and-litigation-funding/draft-an-offer-of-compromise-or-without-prejudice-costs-letter-from-the.md)

## How AI may be used

AI may put the principal's approved orders and amount into the notice and list any rule 20.26 requirement the draft does not yet meet. The principal approves the notice before it is served.

**AI may:**

- Insert the approved claim, orders, amount and closing date
- Flag a draft that states a costs figure inside the judgment sum or says the offer is inclusive of costs

**AI must not:**

- Must not set the amount or the closing date
- Must not add a sentence that the costs rules will not apply
- Must not describe the costs consequences under rules 42.14 or 42.15

**The lawyer checks:**

- The notice identifies the claim and the proposed orders, states that it is made under the rules, and is not expressed to be inclusive of costs
- The closing date is at least 28 days after the offer if the trial is two months or more away, and otherwise a period the principal judges reasonable
- The client has the s 177 estimates before any settlement is executed

## Authorities

- [Uniform Civil Procedure Rules 2005 (NSW) r 20.26 (making an offer of compromise)](https://classic.austlii.edu.au/au/legis/nsw/consol_reg/ucpr2005305/s20.26.html)
- [Legal Profession Uniform Law (NSW) s 177 (client estimates before a litigious settlement is executed)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s177.html)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/costs-billing-and-litigation-funding/nsw-offer-of-compromise and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

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