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.
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.
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.
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
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.
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.
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.
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.
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.
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.
Close the letter with words such as sincerely, truly or respectfully.
Below the closing word, add your signature along with your name and the contact information.
At the bottom of the page below the signature block, mention the list of documents enclosed along with the letter.
Adopt the below-mentioned formal demand letter template when you write.
[State, City, Zip code]
Dear Mr.[Last Name],
[The purpose of the letter, demands, consequences, last date for settlement]
If you are writing the demand letter for the first time, then make sure to follow the tips listed here.
For your reference, a few samples of the letter are mentioned below.
The demand letter for payment
31 August 2021
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.
A sample demand letter for breach of contract
31 August 2021
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.
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.