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Letter of Demand: How to Respond Effectively

What is a Letter of Demand?

A Letter of Demand is a letter usually issued by lawyers on behalf of their clients setting out their clients’ demands for the recipient of the letter to comply with. It is usually reinforced with the threat of legal action (litigation) of the recipient party fails to comply with the demands in the letter.

What should you do if you get a Letter of Demand?

If you get this letter:

⦁ Stay Calm: It’s just a first step, not a court decision.
⦁ Read it Carefully: Understand what they’re asking you to do.
Talk to a Lawyer: Get advice on what steps to take next.
⦁ Reply Quickly: Don’t ignore the letter. If you want to discuss or disagree, let them know within the time they give.

When and How do you send a Letter of Demand?

A Letter of Demand may be issued when one party is wronged by another; for example, when one party fails or refuses to do what he/she was required to under a contract, when one party fails to repay a loan etc. Before a Letter of Demand is issued, it is important to consider the following:

⦁ Get a Lawyer’s Help: A letter from a lawyer is taken more seriously.
⦁ Be Clear: Say what the problem is, what you want and when you want it done by.
⦁ Keep a Copy: Always save a copy and proof you sent it.

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Any information of a legal nature in this blog is given in good faith and has been derived from resources believed to be reliable and accurate. The author of the information contained herein this blog does not give any warranty or accept any responsibility arising in any way, including by reason of negligence for any errors or omissions herein. Readers should seek independent legal advice.

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