Demand Letter is an official communiqué that is sent out to the at-fault party to implore him to right a given wrong.
In the course of transacting business, it is not uncommon for one to default or breach the contract. That may compel the aggrieved party to file a complaint and lodge the same to the party at fault. To do this, the aggrieved party will draft and send out the demand letter.
Though not binding, this letter is largely employed by different parties to let them tackle the issues that they may have breached. We take an in-depth look at it here below.
Benefits of Demand Letter
Below are the core benefits of drafting and using the demand letter in your dealings:
- Expedites the Settlements of Cases: It expedites the settlements of cases in the sense that it gives the party at fault a window to right the wrong before the same dispute may boil over to the corridors of justice. By that arrangement, you get to solve cases at a rate that is somewhat faster and less strenuous.
- Cuts the Litigation Costs: If well responded to, this letter may negate the need to institute legal proceedings in a court of law. In this regard, it cuts down the litigation costs that you would otherwise have to contend with if you choose to settle your disputes in the courtroom.
How to Write a Demand Letter
While writing the demand letter, the following are the steps you have to follow:
Start with the address of the recipient – As with any other official communique, you should start this one also with the address of the recipient. This address has to be displayed on the top left corner of the letter with the date come in first.
Open it with a salutation – Get to the main body of the letter. At this stage, you have to open it with a salutation. A salutation is basically a greeting, usually in the form of respect, which is directed to the recipient of the letter. It entails the use of such kind words as ‘Dear,’ ‘Respected,’ and so on.
Explain exactly what you expect the recipient to do – Proceed now to tell the recipient exactly what you want him to do (the course of action you expect him to take). This, of course, depends largely on the exact issue at hand. It could be repayment of the debt, settlement of pre-agreed sale, and so on.
Set a suitable timeline or deadline – While instructing the recipient to take some actions, you should similarly set a suitable deadline for the action to be taken. The deadline has to be realistic and well within the reasonable time-bounds.
Round it up with a closing statement – Round up the letter with a closing statement. A closing statement is one that wraps up the overall intent and purpose of the letter. It also respectfully asks the recipient to consider the pleas favorably.
Related: Formal Demand Letter for Payment
Demand Letter Sample
Monday, July 27th, 2020,
1555 Lake Woodlands Drive,
Spring. TX 77380
Dear Mr. Jayden,
RE: Demand Letter
I would wish to notify you of an impending debt that you are yet to settle. The amount in question is $14,000 and was contracted from in June 2018 with the promise to repay it within 2 years (June 2020).
Please clear the debt within the next 90 days ending September 30th, 2020. Your failure to meet this obligation shall definitely lead to legal actions.
In case of any objections or further issues, kindly reach me on +1 877-740-9786.
Pietro Pedro Sula
Demand Letter Templates
Tips for Writing a Demand Letter
While drafting this letter, you have to adhere to the following tips:
- Give a brief and concise background – Before you get to the core of the letter, be sure to start out with a brief and concise background of the problem at hand. That will serve to update the recipient. It is the only way he shall quickly draw connections and understand the gist of the letter.
- Maintain a calm and mature language – Always use a language that is mature and great. Particularly, you should avoid any harsh, crass, or threatening languages as they are bound to elicit equally harsh reactions from the readers. That will, of course, jeopardize the chances of positive actions being taken.
- Keep the letter short and concise – Maintain the letter as short and concise as can be. Try and limit its length to only the essential components that are necessary and proper for passing the point forward. That will prevent it from getting too boring to the person concerned.
- Produce and keep complimentary copies – It is always great for you to make complimentary copies and retain an original one for your future references. This spare copy may come in handy when settling disputes later on. It also serves as proof that you indeed handed in the letter.
- Send it out by certified mail – To ensure that the letter reaches the intended destination well, you have to send it out via certified mail. This is the safest method as it is tracked and updates pursuant to it, relayed to the sender, in real-time.
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