A Letter of Demand is a formal notice to a party to fulfil their obligations pursuant to an Agreement or to prevent a party from continuing their breach of their obligations pursuant to an Agreement.

A Letter of Demand is commonly sent where there are issues faced in business transactions especially with regards payment for the services that has been rendered.

You may think that a Letter of Demand is just a letter and would not be effective in recovering debts. However, a well drafted Letter of Demand is undeniably important and it can be advantageous to you.

Although there is no legal requirement for a Letter of Demand to be issued prior to initiating legal proceedings in Court, however, sending a Letter of Demand may be viewed favourably by Court, in the event the matter is litigated, to prove that reasonable steps have been taken to recover the debt due and owing to you and initiating a legal proceeding is your next option to recover the debt due and owing to you.

A Letter of Demand would contain the facts leading up to the dispute. It serves as a notice to the debtor that there is payment due and owing to you and the consequences of failure to make the said payment within the stipulated time frame.

A Letter of Demand is often used to remedy the situation earlier in a more amicable manner without incurring too much cost. It is used to gauge the debtor’s response and will give you a clearer picture of what to expect if you decide to proceed with filing a claim in Court for the debt due and owing.

A Letter of Demand also may initiate communication between parties, leading to negotiations which may conclude with a settlement between parties. It is best to explore this option prior to a claim being filed in Court, which would cost more and involve a longer process.

It is important to write an effective Letter of Demand which clearly states your demands and protect your rights. Fill up the form below or contact us for more information.