Letter offering payment and settling claims
This letter is for situations where a person or business has said that you owe them money in relation to goods or services and you're in dispute over it. You can use it to try and settle the matter by compromising in order to prevent the matter going to court.
If you make a reasonable offer that's rejected and the issue goes to court, you'll have a better chance of any ruling about who pays the legal costs going in your favour.
You can use it if you've received a formal letter of claim, or in relation to an informal allegation or dispute about a debt. There are options to include details of any counterclaim you might have against the other party.