Reasonable Demand

Understanding Reasonable Demand

A reasonable demand can vary depending on the context, but it generally refers to a request or offer that is considered fair and justifiable under the circumstances. Here are a few contexts where the concept of a reasonable demand is applied:

1. Settlement Demands in Legal Cases

In legal contexts, particularly in personal injury cases, a reasonable demand is often associated with a settlement offer that is within the policy limits of an insurance company. For a demand to be considered reasonable, it must be based on the potential judgment that could be awarded if the case goes to trial. This means the defendant should have known that rejecting the demand could lead to a judgment exceeding the demand amount.

2. Policy Limit Demands

A policy limit demand is a specific type of demand where the plaintiff requests the insurance company to pay the maximum amount covered under the policy. This is typically done when the damages are close to or exceed the policy limits, and it puts pressure on the insurer to settle rather than risk a higher judgment.

3. Reasonable Market Demand

In economic or business contexts, reasonable market demand refers to the demand for a product (like oil or gas) that meets current consumption needs within and outside a state. This concept is used to ensure that supply meets reasonable current requirements without overproducing or underproducing.

Crafting a Reasonable Demand

When crafting a demand, especially in personal injury cases, it's crucial to:

• Present Objective Facts: Clearly outline the facts of the case.
• Address Liability: Explain why the defendant is liable.
• Detail Damages: Specify the extent of the damages incurred.
• Outline Settlement Terms: Clearly state the terms of the settlement offer.
• Conclude Persuasively: Emphasize the consequences of not accepting the offer.

In summary, a reasonable demand is one that is fair, well-supported by evidence, and takes into account the potential outcomes if not accepted.