“Letter of Demand”
“Lawyer’s Letter”
Even if you haven’t received one, you’ve definitely heard of a “lawyer’s letter”. “Lawyer’s letter” refers to a letter issued in the name of a lawyer. The most common type is known in English as a Letter Of Demand. Depending on its purpose, it may also be understood as a request letter, collection letter, or demand notice. To avoid ambiguity and be as precise as possible, we will use the formal English name throughout the rest of this article — Letter of Demand.
A Letter of Demand is a strong expression of the client’s demand, conveyed through a lawyer, for the other party to make a payment or take some other legal action. If the other party ignores it, they will face formal legal proceedings (such as a lawsuit). It is usually the final step taken before commencing formal legal action, and the recipient may fulfil their payment or other obligations out of fear of the subsequent formal legal claim. It saves both parties time and money.
What Can a Letter of Demand Do for You?
The most common use is to demand payment of outstanding accounts
A Letter of Demand is often used when the other party has failed to pay money owed to you. However, in such cases, you may first send 1-2 reminder letters before issuing a Letter of Demand, and only consider sending the Letter of Demand once the other party has still not responded.
Using a Letter of Demand to chase unpaid accounts may help you avoid expensive legal action, and litigation can also damage the relationship between creditor and debtor.
Furthermore, it can serve as evidence in legal proceedings, demonstrating that the debtor was given ample opportunity to make payment, or that an attempt was made to resolve the dispute fairly and amicably without resorting to legal process.
Or Where the Other Party Has Not Fulfilled Their Work Obligations
When one party has performed poorly and further work (or some other remedy) is required to rectify the problem (for example, in certain engineering projects), a Letter of Demand can also be used to summarise the applicable law and set out how the other party has breached their obligations. The Letter should make clear how you expect the other party to remedy their unlawful or non-compliant conduct — this may be by completing the work or issuing a refund.
Many Other Disputes May Also Call for a Letter of Demand
– Disputes between employers and employees (such as wages, working hours or other statutory entitlements)
– Disputes between buyers and developers/real estate agents
– Disputes between a company and its suppliers
– Disputes between companies arising directly from intellectual property
– Conflicts and disagreements between neighbours
– Product or after-sales disputes between customers and merchants
– Disputes between shareholders of the same company
and so on…
However, a Letter of Demand Cannot Be Written or Sent Casually
All content in a Letter of Demand must be accurate and comply with court requirements, so that if the other party does not comply with your demand, you can decide to commence legal proceedings. And once legal proceedings have begun, the Letter of Demand can form part of the statement of claim.
Some basic information:
Date, full name, contact details (phone, email, postal address, etc.)
You also need to inform the other party (using debt recovery as an example):
– That they owe you money
– How much is owed
– When it was originally due to be paid
– By when you now expect them to pay you
– How to repay the funds, for example by cash or transfer
– That legal action may be commenced if the debt is not repaid by the date specified in the letter
– That they may be liable (responsible) for the costs and interest associated with your debt
In addition, you should mention and attach evidence of the relevant debt, including invoices or letters relating to goods or services.
Particular care should also be taken: a Letter of Demand must stick to the factual issues and should not include any commentary or accusations directed at the debtor.
What If the Other Party Still Does Nothing After Receiving the Letter?
A Letter of Demand is best sent by both post and email, using both methods to ensure the other party receives it. If you have indicated that the other party has not met your demand by the specified date and you intend to commence legal action, you do not need to wait for the other party to respond after that date before taking legal action.
After receiving a Letter of Demand, the other party may respond in one of the following ways:
– They may acknowledge the debt and repay it:
– They may refuse to pay:
– They may request further information about the debt:
– They may attempt to negotiate to pay a lower amount:
– They may request alternative dispute resolution, such as mediation:
– They may ignore the Letter of Demand entirely
If the Letter of Demand does not achieve the outcome you had hoped for, you may need to commence legal proceedings or take other action.
If you decide to take legal action, the first step in the process is typically filing a Statement of Claim.
