In one sentenceRule 68 lets a defending party force a cost-shifting choice by offering judgment before trial, and lets a party facing a contract or quasi-contract claim lock in a damages figure the same way.
(a)Offer of judgment. – At any time more than 10 days before the trial begins, a party defending against a claim may serve upon the adverse party an offer to allow judgment to be taken against him for the money or property or to the effect specified in his offer, with costs then accrued. If within 10 days after the service of the offer the adverse party serves written notice that the offer is accepted, either party may then file the offer and notice of acceptance together with proof of service thereof and thereupon the clerk shall enter judgment. An offer not accepted within 10 days after its service shall be deemed withdrawn and evidence of the offer is not admissible except in a proceeding to determine costs. If the judgment finally obtained by the offeree is not more favorable than the offer, the offeree must pay the costs incurred after the making of the offer. The fact that an offer is made but not accepted does not preclude a subsequent offer.
(b)Conditional offer of judgment for damages. – A party defending against a claim arising in contract or quasi contract may, with his responsive pleading, serve upon the claimant an offer in writing that if he fails in his defense, the damages shall be assessed at a specified sum; and if the claimant signifies his acceptance thereof in writing within 20 days of the service of such offer, and on the trial prevails, his damages shall be assessed accordingly. If the claimant does not accept the offer, he must prove his damages as if the offer had not been made. If the damages assessed in the claimant's favor do not exceed the sum stated in the offer, the party defending shall recover the costs in respect to the question of damages.
Amendment History
(1967, c. 954, s. 1.)
Plain-English Summary
Rule 68(a) lets a party defending against a claim serve an offer, any time more than 10 days before trial begins, to let judgment be taken against it for a stated sum, property, or other specified relief, plus costs accrued so far. If the adverse party accepts in writing within 10 days, either side may file the offer and the acceptance along with proof of service, and the clerk enters judgment accordingly. An offer not accepted within 10 days is deemed withdrawn, and evidence of it is inadmissible except in a later proceeding over costs. If the offeree ultimately wins a judgment no better than what was offered, the offeree must pay the costs that piled up after the offer was made. An unaccepted offer doesn't stop the offering party from making another one later.
Rule 68(b) gives a party defending against a contract or quasi-contract claim a related option: with its responsive pleading, it may offer in writing that damages be assessed at a stated sum if its defense fails. If the claimant accepts in writing within 20 days and later prevails at trial, damages are assessed at that stated sum. If the claimant doesn't accept, it must prove its damages as though no offer had been made. If the damages the claimant proves don't exceed the amount offered, the defending party recovers the costs tied to the damages question.
Frequently Asked Questions
How late before trial can a party still make an offer of judgment?
Any time more than 10 days before trial begins; an offer made later isn't available under Rule 68(a).
What happens if a plaintiff turns down an offer of judgment and then wins less at trial?
Rule 68(a) requires that plaintiff to pay the costs that accrued after the offer was made, since the judgment ultimately obtained wasn't more favorable than the offer.
What is a conditional offer of judgment for damages?
Under Rule 68(b), a defendant in a contract or quasi-contract case offers, with its answer, to have damages assessed at a stated sum if its defense fails -- if the claimant accepts and later prevails, damages are fixed at that sum; if not, the claimant must prove its actual damages.
Source & verification. The rule text and history citation are reproduced verbatim from the
official North Carolina General Statutes, Chapter 1A (N.C. R. Civ. P. 68). Enacted by the North Carolina General Assembly (S.L. 1967, c. 954, codified at N.C.G.S. § 1A-1). The plain-English summary is original and written by us. Last verified July 3, 2026. ·
Official source
Also known as:offer of judgmentcost shifting offer10 day offer of judgment deadlineconditional offer of judgment for damagesrejecting an offer of judgmentcosts after unaccepted offer