Best Tips- How to Write a Letter of Demand

Do you want to recover the money owed to you? Then, writing a letter of demand would be one of the best solutions.

A demand letter is a formal letter written to make a demand to the defendant. It usually includes a warning that legal action will be taken if the defendant fails to satisfy the conditions as demanded. Preparing a demand letter is the first step that should be followed prior to the start of the legal proceedings.

A well-crafted demand letter will help to resolve the issue at the earliest. So, it should be written in an effective way to make the defendant abide by your conditions. Usually, lawyers prepare the demand letter on behalf of the clients demanding payment or taking some action as required. In order to save money, you can also write it on your own without the help of a lawyer.

Are you confused about how to write a demand letter? Check this guide and get to know about the following.

  • An Overview of the Demand Letter
  • Demand Letter Benefits
  • Demand Letter Structure
  • Demand Letter Format
  • Demand Letter Writing Tips
  • Demand Letter Samples

An Overview of the Demand Letter

Filing litigation and resolving an issue is a hectic process. Instead, you can try to settle the dispute by sending a demand letter to your opponent explaining your demands.

A well-written letter should contain the following details.

  • What action or payment is demanded?
  • Why is it demanded?
  • The consequences of not following the demand
  • The deadline to comply with the demand letter

For example, in the demand of payment letter, you can initiate an open discussion with the defendant by mentioning your side of the story, the amount mentioned in the bills, and the settlement amount you are requesting.

Generally, the letter was written to demand payment, personal injury, insurance, vehicle accident, property destruction, etc.

If your efforts to settle the dispute fail even after sending a demand letter, then file a complaint in the court to fix the issue.

Demand Letter Benefits

Demanding in a formal way before filing a lawsuit with the help of a well-written demand letter is advisable because it holds a lot of benefits.

Some important benefits of sending a demand letter are

  1. It helps the defendant to understand your demand.
  2. It provides a chance for the defendant to settle the issue without the court’s intervention.
  3. It helps to reduce the cost of legal proceedings.
  4. The proof of delivery of the letter stands as a piece of evidence if the dispute is taken to the court.

Demand Letter Structure

When writing a demand letter, be professional and explain your demands in a clear manner along with the deadline and the consequences.

Like every formal letter, the demand letter also has a specific structure. If you are in a situation to write one, then keep in mind to follow the standard demand letter format by including all the below-mentioned necessary elements.

Sender’s Address

If you are the one to send the demand letter, then include your address. Adding the address will help the recipient to know who has sent the letter and to which address he/she has to send a reply letter.

Date

Mention the date on which you are writing. The date should be written in the expanded form like 31 August 2021 or August 31, 2021. Including the date is important as your letter will stand as a piece of evidence if your dispute is taken to the court.

Recipient’s Address

Below the date, write the address of the person to whom you wish to send the demands. Write the recipient’s full address with city, state and zip code.

Salutation

Address the recipient with a formal salutation. You can use ‘Dear’ followed by the title such as Mr., Ms., Dr., etc., and the last name. Be professional while addressing the recipient even if you both share a personal bonding.

Body

The body of the letter should explain the purpose of the letter, demands, the deadline and the consequences within 2 or 3 paragraphs.

At first, the letter should have an introduction paragraph where you need to give valid points or facts explaining the main reason for writing it.

In the next paragraph, discuss the action you performed and the reason why the recipient needs to owe you the money. In the third paragraph, outline the consequences the recipient will face if he/she fails to satisfy your demands. Never use threatening or aggressive words. The aim of the letter is to find a solution quickly and so, without any deviation from the topic, try to express your demands in the appropriate way.

In the concluding paragraph, mention the last date to settle the dispute. Always give a reasonable time frame for the recipient to fix the issue. Also, in a polite way, end the letter by explaining to them how to resolve the issue at the earliest.

Closing

Close the letter with words such as sincerely, truly or respectfully.

Signature

Below the closing word, add your signature along with your name and the contact information.

Enclosures

At the bottom of the page below the signature block, mention the list of documents enclosed along with the letter.

Demand Letter Format

Adopt the below-mentioned formal demand letter template when you write.

[Sender’s Address]

 

[Date]

 

[Recipient’s Name]

[Recipient’s Address]

[State, City, Zip code]

 

Dear Mr.[Last Name],

[The purpose of the letter, demands, consequences, last date for settlement]

 

Sincerely,

(Signature)

[Sender’s Name]

[Contact Information]

 

Enclosures

1.

2.

Demand Letter Writing Tips

If you are writing the demand letter for the first time, then make sure to follow the tips listed here.

  1. Instead of using a handwritten letter, type it with the help of MS Word or any other word processor.
  2. Be professional and polite. Don’t vent out your anger through threatening or abusive words.
  3. Explain your demands in a clear and concise manner.
  4. Know your reader and write the letter in a style suitable to them. For business readers, you can include business terms. To address others, the letter should be simple and understandable.
  5. Provide complete details about what happened and what your expectation or demand is to solve the issue with supporting facts or evidence.
  6. The demands should be reasonable.
  7. Be honest and true to yourself when seeking a demand from the defendant.
  8. Attach the copies of relevant documents such as contract agreement, invoice or any other pieces of evidence proving your purchase of products and services.
  9. Give the defendant at least one or two weeks to settle the dispute.
  10. Take the copies of the letter before sending it. Also, get a confirmation receipt from the courier service or post office as it will stand as proof in the court for sending out a demand letter to the defendant.

Demand Letter Samples

For your reference, a few samples of the letter are mentioned below.

Sample #1

The demand letter for payment

 

William

Newyork 10014

31 August 2021

Mr. Smith

Newyork 10045

 

Dear Mr. Smith,

This demand letter for payment is in line with the loan amount of One Lakh Rupees that I lent you on 15 January 2021 for the down payment of your new car. At that time, you agreed to repay the loan on or before 25 June 2021.

Your payment towards the loan is still pending. It has been 2 months since the full amount was to be repaid. I request you to make the full payment of the amount upon receiving this letter.

If you fail to make the payments in full before 15 September 2021, then I would take legal action against you to recover the debt without any further notice.

This letter shall be treated as evidence in court when you fail to fulfill the demands made. If this matter is taken to court, you shall be required to pay all the applicable interest, attorney’s fees, filing fees and other related expenses.

Your immediate response to this letter of demand will be appreciated.

Regards,

William

william@email.com

+1 147-852-369

 

Sample #2

A sample demand letter for breach of contract

 

James

California 90011

 

31 August 2021

 

Mr. Noah

Manager

ABC Construction

California 90650

 

Dear Mr. Noah,

This letter is a formal notice to discuss the breach of the contract we both signed on 10 June 2021 to construct a water tank on my property located at California, 90650.

According to the contract, you and your company agreed to complete the project by 20 August 2021. It has been one month since the water tank was to be constructed.

I request you to take the appropriate action and complete the construction work as soon as possible. If you fail to do so on or before 31 August 2021, then I would take legal action against you without any further notice.

Remember, this letter shall be treated as evidence in court when you fail to fulfill the demands made.

Your immediate response to this letter will be appreciated.

Regards,

James

james@email.com

+1 147-147-147

Conclusion

The demand letter is not a legal document. It is just a formal letter considered as evidence for legal proceedings. So, be professional and address the letter to the correct person or company.

To craft a powerful letter for a quick settlement of a dispute, follow the format and tips mentioned in this post. If you write an effective demand letter, then you would not have trouble filing a case in court. When writing it, make sure your demands are in accordance with the terms and conditions.