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So there is a question - if an offer is made after a CNF is submitted but prior to cancellation of the CFA, is the deemed costs rule then ineffective if the offer is accepted and the CFA is subsequently cancelled during the cooling off period.

I would have thought that at the time of the offer, there is a deemed offer as to costs. The instance the offer is accepted then the costs offer becomes part of the contract.

As it is, we have a proviso in our CFA and client care letter, that says that all if a CFA is cancelled through the actions of a third party (i.e. as in this case) that all work done prior to cancellation must be paid for at £200 per hour.