Demand Letter
From LawDepot Law Library
Definition of "Demand Letter"
A Demand Letter is a letter that expressly states a legal claim and makes a demand for compensation (restitution) for a breach of contract or legal wrong committed by the recipient. The demand letter sets out: why the compensation is being sought; how it should be provided (e.g. payment in full, payment over time, etc.); and a deadline and directions for reply.
Demand letters are frequently used to maintain some goodwill between business parties and they often encourage payment in order to avoid expensive litigation. Most demand letters contain the “threat” that if the proposed condition is not adhered to, the next communication between the parties will be through a formal legal proceeding.
LawDepot.com has demand letters for the following situations: debt owed, NSF check, action required, and stopped payment on a check.
Demand Letter Resources
- Demand Letter FAQ - Provides general information as well as information specific to LawDepot's automated Demand Letter.
- LawDepot's Automated Demand Letter
- How to Demand Payment for Outstanding Invoices
