Before you send a demand letter
A demand letter is a document that may later be read by someone else. Five checks worth making before it goes out.
Confirm the correct legal entity
Letters addressed to a trade name rather than the licensed entity, or to a branch rather than the contracting party, create an avoidable weakness. Check the trade licence and the contract to confirm who the debtor actually is.
Verify the figure
The amount in the letter should match a reconciled statement of account, not a running total from memory. If credit notes, part-payments or agreed deductions are missed, the recipient will lead with that discrepancy and the letter loses its force.
Check the contractual notice requirements
Many contracts specify how notice must be given: to a particular address, by a particular method, with a particular period. A demand that ignores those provisions may not achieve what it was meant to.
Set a deadline you can live with
State a specific date rather than "immediately". Choose a period you are actually willing to wait, because a deadline that passes without consequence weakens every letter that follows it.
Say only what the documents support
Overstating the claim invites a detailed rebuttal. A letter that sets out the amount, the basis and the deadline calmly and accurately is harder to answer than one that asserts more than can be proved.
What a demand letter can and cannot do
A well-drafted demand creates a formal record and often prompts engagement from a party that had been silent. It cannot compel payment by itself, and it should not be sent with that expectation.
The information on this website is provided for general information only and does not constitute legal advice. Submitting a form does not create a consultant-client relationship.