If you want to recover the money owed to you, then writing a letter of demand would be one of the best solutions. Do you know how to write a letter of demand? In case, you are unsure, then continue reading this blog post. Especially, to help you get a better understanding, here, we have shared the tips for writing a letter of demand in detail along with a standard template and a few sample letters.
What is a Letter of Demand?
A letter of demand or 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 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.
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 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 insist on payment, personal injury, insurance, vehicle accident, property destruction, etc.
If your efforts to settle the dispute fail even after sending a letter, then file a complaint in court to fix the issue.
Advantages of Writing a Letter of Demand
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 letter to a defendant are
- It helps the defendant to understand your demand.
- It provides a chance for the defendant to settle the issue without the court’s intervention.
- It helps to reduce the cost of legal proceedings.
- The proof of delivery of the letter stands as a piece of evidence if the dispute is taken to court.
Standard Structure of a Demand Letter
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 letter, then include your address. Adding the address will help the recipient to know who has sent the letter and to which address the person 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 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, its demands, the deadline, and the consequences within 2 or 3 paragraphs.
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 recipients will face if they fail 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 contact information.
Enclosures
At the bottom of the page below the signature block, mention the list of documents enclosed along with the letter.
Format of a Demand Letter
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.
Tips for Writing a Letter of Demand
If you are writing the demand letter for the first time, then make sure to follow the tips listed here.
- Instead of using a handwritten letter, type it with the help of MS Word or any other word processor.
- Be professional and polite. Don’t vent out your anger through threatening or abusive words.
- Explain your demands in a clear and concise manner.
- 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.
- Provide complete details about what happened and what your expectation or demand is to solve the issue with supporting facts or evidence.
- The demands should be reasonable.
- Be honest and true to yourself when seeking a demand from the defendant.
- Attach copies of relevant documents such as contract agreement, invoice, or any other pieces of evidence proving your purchase of products and services.
- Give the defendant at least one or two weeks to settle the dispute.
- Take 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 court for sending out a letter to the defendant.
Sample Demand Letters
For your better understanding, here we have presented some demand letter samples. Without skipping, check all those demand letter examples and get a clear idea of how to write a flawless letter as per the standard template.
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
+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.
