If the defendant does not dispute the claim brought forward, there is no point in carrying out a full trial (including the taking of evidence). If the substantive claim, which is the object of legal action, is readily proven, it would be better for the defendant to accept the claim.
It is true that the defendant will also be liable to pay costs and compensation on accepting the claim; however, the plaintiff is often prepared to waive compensation for the cost of legal proceedings if the defendant accepts the claim and it is not necessary to pursue costly judicial proceedings. In addition, in case of acceptance of a claim, the court costs are often lower than the costs incurred when it is necessary to pronounce judgement.
Therefore, the defendant would be well advised to check with the court the extent to which his/her costs would be mitigated, prior to the retraction of the claim. Before accepting the claim, the defendant would also be well advised to check with the opposing party whether he/she would be prepared to waive compensation for the cost of legal proceedings.