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How to write a letter of demand? It’s meaning & consequences

letter-of-demand

Hello readers! Different Law courses are grabbing the attention of a lot of students these days. However, students are unaware of a few basic things in this field. This time I am here to help out the law students with the specifics of a letter of demand. If you are a newbie to law studies, then you must continue to read. Hereby, I am explaining some important things related to the letter of Demand. I hope you will love to delve into the details along with me.

This blog post will help you in understanding the meaning, use, format, and sample of letter of demand. You should make sure that you are well-versed with the relevant key concepts before drafting a real one. If you want to get pro tips over this, you can go for assignment help and enhance your knowledge.

Now, let’s have a look over what you are going to learn here and move forward to the details:
-what is a letter of demand
-Why is a letter of demand sent?
-What is the right time to send a letter of demand?
-The tone of a demand letter
-Consequences of a letter of demand
-Things to keep in mind while drafting a letter of demand
-Structure of a letter of demand

What is a letter of demand?

letter-of-demand

It is a formal letter from an attorney generated on behalf of a client. It is usually prepared with a motive of demanding some kind of payment or some other action from the opposing party. A letter of demand is not a legal compulsion in most of the cases. But, it is always served before filing a suit.
The main aim of preparing a letter of demand is to settle the matter without getting into full-fledged litigation. There is a secondary aim as well for sending a letter of demand; i.e., to pressurise the other party over some or other issue.

In simple terms states four major elements:
1. What kind of action or payment is demanded
2. For what reason the action or payment is demanded
3. In what ways the action or payment may be affected
4. What is the time limit for taking action or releasing payment

Apart from this, a letter of demand may or may not carry a slight or bold threat to the opposing party that if the demands are not looked into a court case can be filed and consequences may follow.

Why is a letter of demand sent?

The reason for sending a demand letter is very simple to understand and this I am sure you will understand the same in the very first reading. It is prepared and sent in the situation where a person, say a client has tried for receiving the invoice, but the efforts resulted in nothing. This means one you have tried unsuccessfully to get the invoice paid takes shelter of a letter of demand.

It is a kind of warning to the other party for non-payment of the invoice as it is a served with a motive that it is the time to take a serious step and get into legal proceedings. It is also considered as a final reminder letter. This is because it tells the receiver to settle down the matter or else legal consequences will follow. The concerned person is free to draft a letter of demand on his/her own. Though, people prefer lawyers for doing such tasks, as they are habitual of doing the job and are less prone to mistakes. So, you can try to draft a letter of demand related to a random case study from your coursebook and see how you make it.

Why you need to check your draft?

Well, we know that drafting a letter of demand is not a crucial thing to do, but it definitely needs your focus. The career for which you are working so hard needs perfection in every aspect. Being a law student, you must be investing your fullest efforts in learning all the basics and majors.

But, you should always keep one thing your mind that the job of a lawyer is not a typical desk-job which have room for errors. You smallest errors can result in serious consequences, and this is why you must focus on both learning new concepts and practicing conventional things. Thus, once you complete reading this blog post, I will suggest you write down a letter of demand as a sample and get it checked, You can check it on your own, or you can ask your friends to do this as well.

If you spot errors, regarding the conceptual part or the structural part, you must work for improving your performance. For this, you can go for expert assignment help online as well. By doing so, you will get access to law experts and lawyers who can guide you over every kind of issue.

What is the right time to send a letter of demand?

letter-of-demand

As I mentioned above, this letter is also considered as the final reminder letter, which implies that it is not sent to the other party in a single go. You can consider it a final warning as well, which is not given in the first incidence.

Before drafting a letter, it is very important to deliver reminder letters to the concerned party. Usually, two to three reminder letters are sent before a letter of demand.

A letter of demand is a bit expressive it deals with all the details including how much is owed, what for and when the invoice required to be paid. As I said earlier, it may also carry a warning that the receiver will have to face legal action if the said invoice will not be cleared or the needed action will not be taken till the specified date.

Serving of a letter of demand leaves little or absolutely no room for compromises between the parties, which means long years of litigation. This is the reason why a letter of demand is not served first.

Tone of a demand letter

Drafting a letter of demand is something which you consider as a responsibility. After becoming a lawyer you might have to write such letters on behalf of your clients. Hence, it is necessary to check out the relevant aspects before writing. Hereby, I am not talking about the particulars of matter of dispute only. Yes, they are the very first things which will need your focus. But, this is something everybody knows.

I am asking you to focus on the way of presentation. The manner in which you write matters a lot too, and this is something your professors may or may not tell you because it is not a conceptual or technical thing.
Yes! The letter of demand inherits a warning, but it does not necessarily contain harsh language. So, before choosing the words analyze the relationship between your client and the other party.

The demand letters deal with issues in a serious manner, but at the same time, they can be written in a friendlier tone as well. I am trying to say that the nature of a demand letter depends upon the nature of the case and the relationship between the parties. Also, it depends on how both the parties want to conduct with each other. These can be amiable and help in maintaining the relationship between the sender and the receiver.

What can be the consequences of sending a demand letter?

It is very important to understand the consequences beforehand. The major one is legal proceedings which may or may not results in enough benefits. A lawyer must give a keen thought to the need and way of sending a letter. This is because it can inflame a dispute. However, the brighter side is that there are more chances that this action may recover a debt.

Things to keep in mind while drafting a letter of demand

letter-of-demand

1. Quote

In order to draft a letter of demand one of the basic thing you must come up with is the quote on the basis of which you are going to ask for the payment of the invoice. As we already know that a letter of demand deals with the failure of payments, it must contain the right figure of the amount which is not paid by the other party. You will have to state clearly that what amount is pending and in which form.

2. Evidence

Do not forget to keep all the necessary details with you. If you are quoting a certain amount, you must have appropriate evidence to show your claim right. Usually, receipts and mutual contracts help a lot in this regard. Be prepared for adverse effects if you are going to prepare a letter of demand without backing it with apt evidence. It can strike you back at any stage.

3. Stick to the facts

I know I have told you enough about how the tone of a letter of demand needs to be managed. This point talks about similar things. With the intention of keeping things either subtle or aggressive don’t involve the emotional language. Yes, you have to think about your client’s relationship with the other party, but this nowhere means that you should use emotional language. Talk about the facts and stick to them.

Here is a checklist which you must go through before finalizing a letter of demand.
Make sure that your letter consists of :

-Amount of the debt
-Date the debt was due
-Date of the Letter of Demand
-Detailed description of the debt (what the money is owed for, etc.), and
-Every needed relevant evidence such as contracts, invoices, emails other written agreements
-And you must be aware of any:
-Claim amount limitations (must include the minimum and maximum dollar amounts)
-Time limitations for claiming a debt.

Structure of a letter of demand

letter-of-demand

Yes! It can be an informal piece of writing as well. Mostly, people prefer to follow a definite structure. I will suggest you do the same too. This is because a neat and clear structure helps to keep the letter easy-to-understand and confusion-free. So, let’s move to the structure of a letter of demand:

Introduction

Just like any other letter, you start with addressing the relevant party, which is usually referred to as the party in breach. In the very beginning, you should necessarily state what the letter is all about.

Contract

Now, after the introduction part is written, this is time to summarise the relevant terms of the contract between both the parties. It is always good to involve specific details as much as you can, such as dates, names of individuals concerned (especially the main party), times, relevant receipts or bills.

With a view to ensuring the information is free from irrelevant stuff and easy to understand, you may like to showcase it in a tabular form. Do remember to list of the major and minor terms of the contract. The document should make it clear that your client upheld to end of the contract and relied on the other party to do the same.

Breach of contract

Well, do remember, don’t just move to the details of the other party  who is breach of contract. Prior than this, outline the general law, you can start with specific legislation which is relevant to your matter.
Once you have mentioned the law, then you can list out the reasons to show how the opposing party is in breach of the obligations as per the law. Targeting the specific details is vital to make sure you include all of them.

Effect of breach of contract

After pointing out the other party as the breach of contract, now you should portray the effect of the same. A letter of demand must express all ways breach of contract which has affected your client.
Loss of money
Losing opportunities to earn money
Damage to property and goods
In all, the ways in which the breach affects a person depends on the particular circumstances.

Demand

A letter of demand must clearly show what the concerned party is expecting from the other party in order to rectify the breach. It should state how the other party is supposed to pay for the damage. It is best to revise the native law as it will show you all the possible remedies available.
In case you find it hard to gather enough details, you can try out assignment help online as well. Be it your class assessment of drafting a letter of demand or a self-testing one; the experts will surely give you valuable advice.

Points to remember

If you are looking for monetary compensation, be ready with the evidence of payments or loss of money. Whereas, if you are looking for compensation for services, you may have to provide an invoice as evidence.

Conclusion

By the end of this blog post, we have discussed, what is a letter of demand, and why and how it is served. Hope you get that it is a document prepared either by the concerned person on his/her own or by the lawyer with a motive of claiming damage or pending payments from the other party. We have also discussed the way it should be written and the way it should be structured.

Want someone to guide you?

If you are still confused over some or the other issue, you can just come to our law experts and get valuable suggestions, not only to write down a perfect letter of demand but for every specific problem you ever come across. You can rely on our online assignment help. Thanks for staying connected…

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