Demand Letter: Definition, Purposes, Sample Contents, Legality

The term demand letter refers to a formal document sent by one party to another in order to resolve a dispute. The sending party may issue one requesting payment or another action in order to right a wrong or settle some type of grievance. The recipient may be in financial default, may have breached a contract, or may not have followed through with an obligation. They are normally written by lawyers. Demand letters are commonly the first step aggrieved parties turn to before taking legal action against the recipient.

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.

In most cases, a demand letter is sent as a courtesy or a reminder after other attempts have been exhausted and before any legal action is taken. It is usually forwarded to the recipient by certified mail, giving them a final chance to rectify the situation—financial or otherwise. Most demand letters contain directions on how to resolve the issue, including payment details and deadlines.

Leave a Comment