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WHAT IS A DEMAND LETTER

A demand letter, letter of demand, or letter before claim, is a letter stating a legal claim which makes a demand for restitution or performance of some obligation, owing to the recipients' alleged breach of contract, or for a legal wrong.

5/11/20242 min read

WHAT IS A DEMAND LETTER

A demand letter, letter of demand, or letter before claim, is a letter stating a legal claim which makes a demand for restitution or performance of some obligation, owing to the recipients' alleged breach of contract, or for a legal wrong.

A demand letter is a document sent by one party to another in order to resolve a dispute. The letter requests some form of restitution to the aggrieved party and is often preceded by amicable attempts to remind a recipient of the obligation. Most demand letters are written by lawyers.

Demand letters outline the damages, the demand for restitution, a deadline, as well as any consequences if the conditions are not met. Don't ignore a demand letter but take the time to review and respond to it if you receive one.

The demand letter serves many purposes. It might convince a party to comply with a contract, thereby preventing a lawsuit. Good demand letters explain a party’s position so that the recipient can consider a negotiated compromise or choose to litigate the dispute.

Common types of demand letters include:

a.) Property damage claims demand letters.

b.)Personal injury claim demand letters.

c.) Partnership dispute demand letters.

d.) Breach of contract demand letters.

e.) Stop payment demand letters.

f.) Non-payment demand letters.

Insurance claim demand letters.

As the name implies, a demand letter requests that the recipient make restitution to the aggrieved party. It is often preceded by phone calls, emails, and other more amicable attempts to remind the recipient of their obligation. As noted above, demand letters are generally written by a lawyer on behalf of an individual or corporation, although the sender may sometimes write it themselves.

The recipient may follow through with the writer's request by fulfilling the conditions outlined in the letter. The recipient may, on the other hand, respond with their own letter denying the claims. The recipient may also choose to ignore the demand letter. In the last two cases, the sender may take legal action, bringing a lawsuit in court to remedy the situation.

The demand letter should include the following information:

a.) The purpose of the letter

b.) The parties involved

C.) The date/time of the grievance

a description of any and all damages incurred by the writer

the demand for restitution.

What to Do When You Receive a Demand Letter?

Receiving a demand letter can be intimidating, especially if it is unexpected. As a result, some people may choose to throw away or ignore the letter when they get one. While that isn't illegal, it's usually not a good idea to do so. That's because it's usually seen as a measure of good faith on the part of the sender to come to a resolution. If the matter ends up going to court, you'll probably have to answer for your actions or lack thereof.

NB: This article is not a legal advice, and under no circumstance should you take it as such. All information provided are for general purpose only. For information, please contact chamanlawfirm@gmail.com

WRITTEN BY CHAMAN LAW FIRM TEAM

EMAIL: chamanlawfirm@gmail.com

TEL: 08065553671, 08024230080