Compromise Offers in Legal Disputes
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Questions and Answers

What does an offer of compromise typically include?

  • Admission of liability
  • Acceptance of costs from the other party
  • A demand for payment
  • Future claims against the party (correct)
  • An unconditional offer can be disclosed in court.

    True

    What is the significance of a 'without prejudice' offer?

    It protects the offer from being used against the party in court.

    The _____ of offer/tender must be given to all parties involved in the litigation.

    <p>notice</p> Signup and view all the answers

    Match the following terms related to compromise offers with their meanings:

    <p>Tender = Offer to perform an act or payment Without prejudice = Legal protection for negotiation confidentiality Unconditional offer = Offer that can be used in court Notice of offer = Requirement to inform all parties</p> Signup and view all the answers

    What is the main characteristic of an unconditional offer?

    <p>It is made without any conditions.</p> Signup and view all the answers

    Accepting a compromise offer allows the offeree to pursue further claims for the balance.

    <p>False</p> Signup and view all the answers

    What phrase indicates an offer made under denial of liability?

    <p>Without Prejudice Offer</p> Signup and view all the answers

    A compromise offer must include the wording '______' to indicate it is an offer to settle.

    <p>without prejudice</p> Signup and view all the answers

    Match the type of offer with its description:

    <p>Unconditional Offer = Full acceptance of liability for the claim Compromise Offer = Settlement with denial of liability Novation = Extinguishing a claim upon acceptance Tender = Performance demanded to settle a claim</p> Signup and view all the answers

    Study Notes

    Compromise Offer: Pitfalls

    • A dispute can be settled at any time prior to the institution of legal proceedings, usually after demand & offer.
    • Carefully worded compromise offer: "For the sole purpose of setting this matter, and without admitting my liability for any part of your claim, I hereby offer, without prejudice, the amount of R20 000 in full & final settlement of your present claim & any future claims, you may seek to bring against me, incl. all related claims for interest & costs arising from the motor vehicle collision which took place on 1 January 2016 at the corner of Jan Smuts Drive & Lancashire Road, Johannesburg, between motor vehicles GP 1007 & BDH 869 GP."

    Compromise Offer: Cautions

    • Ensure wording is clear and unambiguous.
    • Consider the offer carefully in a full and final settlement.
    • Ensure clear intent to settle.
    • Include all costs of both parties.
    • Provide clear reasons for denial.

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    Description

    This quiz covers the key aspects of compromise offers in legal disputes, focusing on the importance of clear wording and the implications of full and final settlements. Learn how to navigate the complexities of making and receiving such offers in a legal context, ensuring that all parties' interests are considered.

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