When To Resort to a Breach of Contract Demand Letter

Breach of Contract When To Resort to a Breach of Contract Demand Letter

Create an Efficient Breach of Contract Demand Letter

When a party breaches a contract, you have two options—forget about the actions and terms you have agreed on or claim your damages.

If you opt for the latter option, you can try to resolve the dispute by sending a breach of contract demand letter to your opponent. DoNotPay presents useful information about this type of formal letter and the most efficient way to create one.

What Is a Breach of Contract Demand Letter?

A demand letter for breach of contract is a formal notice that:

  • Reminds another contractual party that they have not fulfilled the terms of an agreement
  • Includes proposed solutions allowing both parties to resolve the matter outside court
  • Precedes a breach of contract lawsuit
  • Can be used in the litigation proceeding

A Sample Demand Letter for Breach of Contract

When you start preparing your breach of contract demand letter, you need to ensure the following parts are included:

What To Include in a Demand LetterDetails
DateWhile it might seem irrelevant, you need to put the date since it will serve as:

  1. The record of when you formally informed the other party of the breach of contract
  2. Evidence if your case ends up in court
Description of the breachYou should state concisely and clearly what part(s) of the contract the other party has breached, i.e., if they:

  • Have not paid or implemented the activities agreed upon in the contract
  • Make it impossible for you to implement your activities
  • Have said that they do not want to perform their obligations in the future
SolutionA demand letter should:

  1. Propose a solution to the breach of contract
  2. Serve to terminate the contract and seek remedies (if the problem cannot be solved)
DeadlineYou should provide a specific date by which the other party can fix the breach of contract

Keep in mind that while you can send a demand letter for any type of breach, courts are most concerned with a material one since this type:

  • Ends the agreement
  • Destroys the contract value

What To Avoid in Demand Letters for Breach of Contract

To keep a professional tone in a breach of contract notice letter, you should not threaten the other contractual party because you:

  • Want to come to an arrangement as soon as possible, and provoking the other side lessens your chances of success
  • Need to keep in mind that a judge might:
    • Read your breach of contract demand letter if you go to court
    • Find you hostile because of your unprofessional and impolite letter (especially if the other party raises duress as one of their affirmative defenses)

A Response to a Breach of Contract Letter

You can receive different responses to your breach of contract demand letter—here are the most common ones:

  • No response—If you do not get a response after a couple of weeks, you could:
    • Send another letter that refers to the date and terms of the first one
    • Consult a lawyer
    • Start litigation
  • The recipient of the letter claims they are not in breach of the contract—You need to review the breach of contract elements and consider the response carefully since the other party might be correct
  • The other party requests a meeting—While this is the best way to resolve the problem as it suggests the breaching party wants to negotiate, you need to be careful when agreeing on a solution. If you are not certain, you should seek advice from an attorney
  • The other party agrees they are in breach of the contract—In this case, you can sign a settlement agreement

How To Write a Demand Letter for Breach of Contract

To create a demand letter, you could explore the following options:

  1. Hire an attorney—Keep in mind that while you can engage a lawyer to draft this type of letter for you, this service can be extremely costly
  2. Visit a collection agency—Debt collectors can help you get the money you are owed, but it can be time-consuming and pricey
  3. Try to do it by yourself—You can:
    1. Get familiar with state laws to make sure you do not omit any important parts
    2. Use a demand letter template—Make sure you inspect the template carefully since most online samples are too general and might not apply to your specific case
  4. Use DoNotPay—Our app has a vast database with state and local regulations to help you prepare an airtight breach of contract demand letter efficiently

DoNotPay Is the Right Way to a Reliable Breach of Contract Demand Letter

DoNotPay is the first robot lawyer that:

  1. Is familiar with legal requirements
  2. Can generate a breach of contract demand letter within minutes

The process is straightforward and fast—sign up for DoNotPay and take these steps:

  1. Open our Client Breach of Contract product
  2. Enter the specifics of your contract by answering our chatbot’s questions
  3. Choose the payment deadline

Once you have completed these easy steps, DoNotPay generates a breach of contract demand letter to help you resolve your dispute fast.

To check state-specific regulations regarding breach of contract, you should take a look at the following table:

ColoradoNew YorkIllinois
VirginiaNew JerseyOhio
South CarolinaNorth CarolinaFlorida

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