Form 14A – Offer to Settle

Jurisdiction: Country: Canada | Province or State: Ontario

What is a Form 14A – Offer to Settle?

Form 14A is the Small Claims Court’s official offer-to-settle document. You use it to make a formal settlement proposal in an Ontario Small Claims Court case. Either side can use it. A plaintiff can offer to settle the claim. A defendant can offer to settle the claim or a defendant’s claim. A third party can also use it if the case includes third‑party issues. The form turns your proposal into a clear, written offer with legal effect.

This form is not a motion or pleading. It does not argue your case. It is a structured proposal to resolve some or all issues. You put your terms in writing and serve the form on the other side. If they accept, you have a binding settlement. If they refuse, the court may consider the offer later when deciding costs.

You typically use this form to control risk and costs. Settlement lets you end the case early. You reduce time away from work. You avoid the stress and uncertainty of trial. You also set payment terms that work for you, such as installments or a firm deadline. A clear offer can also improve your position on costs if you go to trial and beat your own offer.

Most small claims disputes are about money. Common examples include unpaid invoices, faulty work, unpaid loans, property damage, delivery disputes, and contract breaches. In these cases, Form 14A helps you say, in precise terms, what you will accept or pay to end the case. You can make the offer “all‑inclusive” (one number for everything). Or you can break it out (damages, interest, and costs as separate items). You can also add non‑money terms, like returning goods, fixing work, or signing a release.

Who typically uses this form?

Self‑represented litigants, small business owners, contractors, suppliers, consumers, and insurers. Paralegals and lawyers also use it on behalf of clients. You can send an offer at many stages. You can do it early, after getting the claim or defence. You can do it at or after the settlement conference. You can do it close to trial when you see the case clearly. The form is flexible. It can address all issues or a single issue, like the cost of a repair.

An offer to settle is private until costs are argued. It is “without prejudice except as to costs.” That means the judge should not see it until after the decision on liability and damages. The offer cannot be used as evidence on the merits. But the judge can consider it when awarding costs. That is why the format and wording matter. Precision today prevents disputes later.

When Would You Use a Form 14A – Offer to Settle?

You use Form 14A when you want to propose a concrete settlement with legal weight. You would prepare it when informal talks stall, or when you need to lock down terms. You might send it right after reviewing the other side’s pleadings. Early offers can prompt quick resolution before you spend more on evidence and witnesses. You might also wait until after the settlement conference. At that point, you have heard a neutral view and seen the other side’s evidence. Your numbers may be more accurate then. You might send it after you receive key records, estimates, or expert opinions. That gives you confidence that your offer is fair and defensible.

A plaintiff might use Form 14A after getting a partial payment or repair offer. You can set out a final amount and terms to end the case. A defendant might use the form to pay a lower amount than claimed. You can include reasons such as disputed work quality or late delivery. You can also propose returning goods or undoing a contract. A business owner might use it to protect a customer relationship. Settling with a payment plan can be better than winning and then chasing the judgment. A contractor might propose a repair at their cost plus a small payment. That can be more efficient than fighting over invoices and estimates.

If the amount is close and the gap is small, a formal offer helps. It signals seriousness and creates cost protection. If you expect to win but want certainty, you can send an offer that you think you will beat at trial. If the other side refuses and you do better than your offer at trial, the court may award you higher costs from the date of your offer. If you expect to lose but want to limit damage, you can set a ceiling by making a reasonable offer. If the plaintiff wins less than what you offered, you may gain cost protection from the date of the offer.

You would also use Form 14A to propose structured payment. For many defendants, a lump sum is not feasible. An offer with installments, dates, and a default clause can unlock settlement. Plaintiffs often accept this if the terms are strict and enforceable. You can add a consent to judgment on default. That helps a plaintiff enforce quickly if payments stop.

If your case includes a defendant’s claim or a third‑party claim, use the form to settle those side claims. You can settle the main claim and leave the side claims open, or resolve everything. The form allows you to specify what you are settling. That avoids gaps and confusion.

Legal Characteristics of the Form 14A – Offer to Settle

An offer to settle is a legal proposal capable of acceptance. If the other side accepts it as written, it becomes a binding settlement contract. Acceptance must match the offer. If they change terms, that is a counter‑offer, not an acceptance. Consideration exists because both sides give up the right to continue the lawsuit on the settled issues. Once accepted, the settlement can be enforced like any contract. The court can make an order on consent or on motion to enforce the settlement if needed.

Form 14A is designed to meet court expectations for offers. It should be in writing, signed, and served. It should clearly identify the parties and the court file. It should state the terms, the deadline to accept, and whether it is inclusive or plus costs and interest. Clear wording avoids disputes. Ambiguity can make an offer unenforceable or reduce cost benefits. Say exactly what you will pay or accept, and on what schedule. Say whether the amount includes interest and disbursements. Say whether HST is included if the dispute involves taxable services or goods.

The offer is “without prejudice except as to costs.” That phrase preserves confidentiality on the merits. The judge should not see the offer until after deciding liability and damages. After judgment, the court may consider the offer on the costs issue. If your result is as good as or better than your own offer, you may receive enhanced costs from the date of service of the offer. If the other side’s result is as good as or better than their offer, they may receive costs from the date of their offer. Timing and clarity affect this analysis. The court will assess whether the offer was a reasonable compromise at the time it was made.

You can withdraw an offer before acceptance. Do it in writing and serve the withdrawal. You can also replace an earlier offer with a new one. If you do not set an expiry date, the offer remains open until withdrawn, rejected, or until the court decides the case. Most parties set a clear deadline. Deadlines focus minds and reduce later disputes.

Acceptance must be in writing and served before the deadline. If the other side accepts after the deadline, it has no effect unless you agree. If one party is represented, the acceptance should be served on their representative. Keep proof of service for both the offer and the acceptance. An offer does not admit liability. It is a compromise for settlement purposes only.

If a party is a minor or a person under disability, any settlement requires court approval. The litigation guardian must bring the proposed settlement to a judge for approval. The court will review the terms for fairness. Do not rely on an acceptance alone in that situation. Plan for the approval process in your timeline.

If you include a release, make it clear and attach it. A release adds finality beyond the claim itself. Without a release, settlement usually ends only the court case, not other potential claims. If you want final peace, use a mutual release that covers known and unknown claims arising from the facts in dispute. Keep the scope reasonable for Small Claims Court.

If you agree to installments, include a default clause. A common clause allows the plaintiff to have judgment for the unpaid balance if the defendant misses a payment. This clause avoids fresh litigation to enforce. You can also require post‑judgment interest on any late amounts at the court rate or a set rate. Ensure the rate is lawful and clear.

Do not file the offer with the court before trial. The court should not see it until costs are argued. Keep your original offer and proof of service. If the offer is accepted, file a consent and draft order, or a notice of discontinuance or dismissal, as appropriate. If the other side accepts and then defaults, you can move to enforce the settlement or register the consent judgment if you have one.

How to Fill Out a Form 14A – Offer to Settle

Follow these steps and use precise, plain language.

1) Gather your information

• Court file number and court location.
• Full legal names of all parties, as on the claim and defence.
• Addresses for service and representatives’ contact details.
• Exact amounts claimed and any interest claimed to date.
• Practical payment options and dates you can meet.
• Any non‑money terms you want, like returns or repairs.

2) Complete the court heading

• Enter the court file number exactly as assigned.
• Insert the correct Small Claims Court location.
• List the plaintiff(s) and defendant(s) names without changes.
• If there is a defendant’s claim, note that in your terms, not in the heading.

3) Identify the offeror

• State who is making the offer: plaintiff, defendant, or third party.
• If multiple parties join in one offer, say so clearly.

4) Write the settlement terms

State the core terms clearly. Cover these points:

• Scope: Say whether this settles the entire claim, part of the claim, the defendant’s claim, or all claims among named parties.
• Amount: State the dollar amount in numbers and words.
• Inclusive or plus: Say if the amount is “all‑inclusive of interest and costs” or “plus reasonable costs and disbursements to be agreed or assessed.” Choose one. Do not leave this open.
• Interest: If not all‑inclusive, state whether pre‑judgment interest is included or additional. If you settle with a consent judgment, state post‑judgment interest rate if different than the court rate.
• Payment timing: Set exact dates. Example: “Pay $4,000 on or before October 31, 2025.”
• Installments: If using a plan, list each payment, amount, and due date. State payment method and place. Example: e‑transfer to a specified email or mailed cheque to a specified address.
• Default clause: Add a clear default term. Example: “If the defendant misses a payment, the plaintiff may have judgment, without notice, for the unpaid balance, less payments made, plus post‑judgment interest.”
• Non‑money terms: Describe any work, return of goods, or corrections. Include deadlines and standards. Example: “Defendant will remove and replace the backsplash using white subway tile, 3×6, to a workmanlike standard, by November 15, 2025.”
• Dismissal or judgment structure: Choose one of these common outcomes:
• Dismissal approach: “Upon full payment and completion of the non‑money terms, the plaintiff will consent to a dismissal of the claim, without costs, within 10 days.”
• Consent judgment approach: “The parties consent to judgment in the amount of $X with terms of payment as set out. If all payments are made, the plaintiff will not enforce the judgment.”
• Release: If you want a release, attach it as Schedule A. Refer to it in the offer. Example: “The parties will sign the mutual release attached as Schedule A within five days of acceptance.”
• Confidentiality: If you want it, include a clear term. Note that court filings are public. Keep confidentiality to settlement communications and terms, not to filed orders.
• Tax: If HST or other tax applies, say whether it is included or extra. Example: “The settlement amount includes HST.”
• Costs of settlement documents: Say each party bears their own costs of preparing releases and consents, unless agreed otherwise.

5) Set the acceptance deadline

• Give a date and time. Include the time zone. Example: “This offer may be accepted in writing until 5:00 p.m. Eastern Time on November 1, 2025.”
• You can allow the offer to remain open until withdrawn. If so, say: “This offer remains open until withdrawn in writing.”

6) Add the “without prejudice” language

• Use this standard phrase: “This offer is made without prejudice, except as to costs.”
• You can add: “This offer is made under the Small Claims Court rules on offers to settle.”

7) Sign and date

• Sign the form. Print your name and role (plaintiff, defendant, paralegal, or lawyer).
• Add contact details: address, phone, and email for service.
• If you are a licensed representative, include your license number.

8) Attach schedules

• Schedule A: Mutual release, if required.
• Schedule B: Payment plan, if long or detailed.
• Schedule C: Property description for any return of goods.
• Reference each schedule in the body of the offer.

9) Serve the offer

• Serve every opposing party or their representative at the address for service.
• Use an approved service method. Keep a record of service.
• Consider using an Affidavit of Service if you expect costs arguments later.
• Do not file the offer with the court at this stage.

10) Track, manage, and respond

• Note the deadline. Follow up if silence continues.
• If you receive a counter‑offer, treat your offer as rejected unless you agree in writing to keep it open.
• If they accept, ask for signed written acceptance. Confirm timelines for payment and documents.
• Prepare a consent and draft order or a notice of dismissal. File it once conditions are met.
• If they miss payments under a consent judgment, enforce under the default clause. If you used a dismissal approach, seek a consent judgment or bring a motion to enforce the settlement.

Examples to model:

• Plaintiff, all‑inclusive lump sum:

“The defendant shall pay the plaintiff $5,500, all‑inclusive of damages, interest, and costs, on or before November 15, 2025. Upon payment, the parties will sign the mutual release at Schedule A, and the plaintiff will consent to a dismissal of the claim within 10 days.”

• Defendant, installments with default:

“The defendant shall pay $6,000 to the plaintiff in six equal monthly installments of $1,000 due on the first day of each month starting December 1, 2025. If the defendant misses any payment, the plaintiff may have judgment, without notice, for the unpaid balance, less payments made, plus post‑judgment interest at the court rate. On full payment, the parties will sign the mutual release at Schedule A, and the plaintiff will file a consent to dismissal.”

• Non‑money performance plus payment:

“The defendant will return the espresso machine identified by serial number ABC123 to the plaintiff’s warehouse at 123 Industrial Road by November 10, 2025, in good working order, and pay $800 for repair parts. Upon return and payment, the plaintiff will discontinue the claim.”

Common pitfalls to avoid:

• Do not say “plus costs” without a number or a clear process. Either set a dollar figure or say “to be agreed or assessed.” If you want a cap, set one.
• Do not leave interest unclear. Say “all‑inclusive” or define what interest is included.
• Do not omit deadlines. Courts and parties need clear dates to enforce.
• Do not rely on oral acceptance. Get written acceptance served before the deadline.
• Do not forget a default clause on installment plans. Without it, you may need a new motion to enforce.
• Do not mix claims unintentionally. If there is a defendant’s claim or third‑party claim, say what this offer settles and what continues.

Practical tips:

• Price settlement against your best realistic outcome, not your ideal. Focus on net recovery after costs and time.
• Use evidence to anchor your number. Reference quotes, invoices, or photos in your thinking, even if you do not attach them.
• Keep the offer professional and neutral in tone. Avoid blame or threats.
• Set a reasonable deadline. Give at least several business days if you want serious review.
• Keep your proof of service and a clean copy of the signed offer in your file.
• If you beat your offer at trial, bring a copy to costs submissions. The court can only consider it then.

What happens after acceptance:

• If you chose a dismissal approach, wait until payment and performance are complete. Then file your consent to dismiss or notice to discontinue, as agreed.
• If you chose a consent judgment approach, file the signed consent and draft order. Then enforce only if needed.
• If the other side accepts and then refuses to sign a release, rely on the accepted offer and attached release. Seek an order enforcing the settlement if required.

By using Form 14A, you create a clear path to resolution. You define payment, timing, and consequences. You protect yourself on costs if the case proceeds. And you keep control over outcome and risk.

Legal Terms You Might Encounter

Offer to Settle means a written proposal to end your case on set terms. Form 14A records that proposal and how long it stays open.

Parties are the people or businesses in the case. You list the correct legal names on the form so everyone is clear.

Claim is what the plaintiff says the defendant owes or must do. Your offer may cover part or all of that claim.

Defence is the defendant’s response to the claim. An offer can come from either side, no matter the defence.

Without Prejudice means the court should not see the offer before deciding the case. The form is treated that way unless costs are in issue.

Costs are expenses linked to the case, like filing fees. Your offer should say if it includes costs or not.

Acceptance means the other side agrees to your offer as written. You should confirm acceptance in writing and keep proof.

Counteroffer is a reply that changes terms. It is not an acceptance. It creates a new offer for you to accept or reject.

Service is how you deliver the offer to the other side. You must use a method the court allows and keep proof.

Filing is giving documents to the court clerk for the court record. You usually serve an offer first and only file it if needed later.

FAQs

Do you have to use Form 14A to settle?

No. You can settle by written agreement without the form. But Form 14A helps show a clear offer and deadline. It also helps if the court later considers costs.

Do you file Form 14A with the court right away?

Usually, no. You serve it on the other side and keep it confidential. You may file it later if acceptance is disputed or if costs are considered.

Do you need to label the offer “without prejudice”?

You do not need to add those exact words on the form. Form 14A serves that function. Do not attach it to other filings before a decision on the case.

Do you set a deadline for acceptance?

Yes, set a clear deadline. Use a date and time. A firm deadline avoids confusion and keeps pressure on both sides to decide.

Do you include costs and interest in the amount?

Say if the amount is all-inclusive or not. You should specify if it includes costs, interest, and disbursements. If not, state what is extra.

Do you need to sign the form?

Yes. Sign and date it. Print your name and role. If you are an agent or representative, state your authority to sign.

Do you have to serve the offer on every party?

Yes. Serve each party who would be affected by the settlement. Use a permitted method. Keep proof of service for your records.

Do you withdraw or change an offer after sending?

You can withdraw or change it by serving a new notice. Withdrawal takes effect when the other side receives it. Keep proof of service.

Checklist: Before, During, and After

Before signing:

• Court file number. Confirm it matches your case.
• Correct party names. Use full legal names for each party.
• Contact details. Verify addresses for service and email permissions.
• Settlement terms. Amount, timing, and payment method.
• Payment schedule. Dates, installments, and default consequences.
• Interest. State if included, or specify the rate and period.
• Costs and disbursements. State if included or extra.
• Non-money terms. Return of property or repairs, if any.
• Release language. Decide if a separate release is required.
• Dismissal terms. Decide how and when the case ends if accepted.
• Deadline to accept. Set a specific date and time.
• Conditions. Add conditions that must happen before payment.
• Enforcement plan. Note what happens if payment is missed.
• Proof plan. Decide how you will prove acceptance and service.

During signing:

• Date. Enter the correct date of the offer.
• Signature. Sign in ink or acceptable digital form.
• Name and role. Print your name and your role in the case.
• Amount clarity. Confirm totals, interest, and costs are clear.
• Deadline clarity. Confirm the expiry date and time appear once.
• Terms readability. Use short sentences and simple terms.
• No blanks. Do not leave any critical blanks on the form.

After signing:

• Serve the offer. Use a permitted method and address for service.
• Record service. Keep an affidavit or other proof of service.
• Calendar the deadline. Track the acceptance expiry.
• Confirm acceptance. Get written acceptance if the other side agrees.
• Freeze the terms. Do not change terms after acceptance.
• Close the loop. Arrange payment or performance as agreed.
• End the case. File any required documents to conclude the case.
• Keep records. Store the signed offer, proof of service, and acceptance.
• Follow up. Check that payment cleared or property was returned.
• Prepare for costs. Be ready to show the offer if costs are decided.

Common Mistakes to Avoid

Don’t forget to say if costs are included. This causes confusion and disputes about extra payments. It can delay settlement.

Don’t set an unclear deadline. Vague deadlines cause missed acceptances and arguments. Use a date and time.

Don’t use vague terms. Broad phrases like “ASAP” or “reasonable” invite disputes. Specify dates, amounts, and steps.

Don’t serve the wrong person or address. Invalid service can void the offer. Always use the address for service on file.

Don’t file the offer too early. Filing can reveal the offer at the wrong time. Keep it off the court record unless needed later.

What to Do After Filling Out the Form

Serve the offer promptly. Use a permitted method and the address for service. Email service requires the other side’s consent or a clear rule allowing it. Keep proof.

Track the expiry date. Note the exact date and time. Remind yourself two days before the deadline. Follow up once, then wait.

Handle acceptance in writing. If the other side accepts, ask for written confirmation. Keep it with your proof of service.

Lock down the settlement terms. Confirm dates, payment method, and any conditions. Ask who will prepare closing documents. Keep all communications.

Plan the dismissal or withdrawal. Decide how the case will end once payment or performance occurs. File the required closing document.

If a payment plan is involved, calendar each date. Confirm how late payments will be handled. State the default consequence in the settlement.

If the offer is not accepted, prepare for the next step. Get ready for the conference or trial. Continue to consider settlement options.

If you improve the offer, serve a new one. Make the new terms clear. State that it replaces prior offers.

At the end of the case, be ready for costs. The court may consider offers when awarding costs. Bring a copy of the offer and proof of service if asked.

Store your records. Keep the signed offer, acceptance, proof of service, and any closing documents. Keep them even after the case closes.