Demand Letter

A demand letter is a formal written document sent by one party (often called the claimant) to another party (the opposing party) that outlines a dispute and demands a specific resolution or action. It serves as a professional request for the recipient to address the issue, such as paying a debt, fulfilling a contract, or compensating for damages, before legal action is pursued.

Key characteristics of a demand letter include:

• Clarity: It clearly details the nature of the dispute and the demands in straightforward language.
• Structure: It typically includes specific facts such as dates, descriptions of injuries or damages, and any relevant documentation.
• Purpose: It aims to start negotiation and potentially resolve the conflict without going to court, often highlighting the risks and costs of litigation to persuade the recipient.
• Delivery: Often sent via certified mail to ensure proof of receipt.

In legal contexts, demand letters are commonly used in contract disputes, personal injury claims, and commercial law. For example, in personal injury cases, the letter will describe the accident, injuries, medical treatments, and financial losses, followed by a settlement demand. Some jurisdictions require sending a demand letter before filing a lawsuit to demonstrate an attempt to settle the dispute.

Additionally, demand letters create a paper trail that can be useful as evidence if the dispute escalates to litigation.

In summary, a demand letter is a formal, clear, and structured communication that initiates dispute resolution by requesting the opposing party to fulfill an obligation or compensate for a harm, often serving as a precursor to legal action if ignored.