Create a Demand Letter Without Wasting Your Energy and Money
A breach of contract is common in business deals and can happen for different reasons, but it does not mean that you should give up on what you have agreed on in the contract.
Resolving an issue without going to court is beneficial to both parties. You should explore various remedies and warn the other party by sending a demand letter before starting litigation.
This article explains how you can prepare a demand letter without spending a lot of time, money, and energy.
A demand letter is a document used to request the recipient of the letter to take or end a particular action. The purpose of a breach of contract demand letter is to:
- Start negotiation between contract parties
- Make the letter recipient understand the breach of contract elements
- Avoid a breach of contract lawsuit
You should create a demand letter because it:
- Explains to the other party—i.e., a prospective defendant—that:
- Their chance of success in litigation is low (unless the other party raises affirmative defenses)
- Litigation is expensive, inconvenient, and time-consuming
- Creates a paper trail that:
- Proves you have tried to mitigate the harm caused by the breach
- Can serve as evidence for your small claims court case
A demand letter usually states the:
- Harm the recipient of the letter has caused you
- Damages you are requesting (e.g., for a material breach of contract)
Keep in mind that according to some statutes, you have to send a demand letter to a prospective defendant before you can claim a viable cause of action.
Even if your state’s statute doesn’t require making a demand letter before filing a lawsuit, you should consider writing it since this document:
- Accelerates case settlement—A solid and clear demand letter can make the other party understand that you:
- Will invest energy, money, and time to resolve the issue
- Are ready to defend your case even if it means taking it to court
- Have a good chance of winning the case
- Helps you gather evidence—Drafting a demand letter makes your position clear and provides:
- Evidence for court
- Data and legal and other aspects you will need to justify your position in court
To create a demand letter, you should follow the tips presented in the following table:
|How To Write a Legal Demand Letter||Specifics|
|Present the facts||While you might believe that the recipient of the letter is already familiar with all the data, you need to remind them about contractual terms and conditions since they:
Keep in mind that you should make a list of all steps you have taken to try to settle the dispute with the defendant, including, for instance:
|Be formal and polite||Regardless of how angry you might feel, you should keep a polite and neutral tone throughout your demand letter to:
While you can find numerous demand letter templates and samples online, you should keep in mind that most of them are too generic and might not fulfill the case-specific aspects and requirements.
To avoid confusion and potential delay, you need to include the following in your demand letter:
- Your demands—You need to be precise about your requirements. It means you should:
- List all losses you have suffered
- Include the exact figure you are asking for
- The deadline—A demand letter needs to set a deadline you are giving your opponent to pay the damages before you take them to court
To draft a demand letter, you can:
- Hire a lawyer—While any attorney can prepare a demand letter, hiring one is probably the most expensive option
- Head to a collection agency—If you decide to hire a debt collector, they will charge you between 25 to 50 percent of the total collected amount
- Do it yourself—If you do not have enough knowledge, you could:
- Omit some important parts
- Cause additional problems instead of resolving the issue
You do not have to spend a lot of money on an attorney or debt collector. There is also no need to spend time or energy trying to understand state laws—register for DoNotPay to create a reliable demand letter efficiently and smoothly.
DoNotPay is familiar with state laws and good practices, and we make sure your demand letter:
- Meets legal requirements
- Covers all necessary points
- Suits your specific case
To receive a trustworthy demand letter, subscribe to DoNotPay and:
- Access the Client Breach of Contract product
- Answer our chatbot’s questions and provide information about your contract, i.e.:
- Name of your client
- Terms of your service agreement
- The deadline for payment
- The amount other party owes you
- Select the final due date for the payment before you take further legal action
Once you have provided the above-listed data, DoNotPay generates your demand letter automatically to help you collect payments as soon as possible.
If you want to explore the breach of contract topic further, you should browse through our website. DoNotPay provides some useful guides and answers questions, such as:
- What consequences can a breach of contract have?
- Can you file a claim for breach of contract in federal court?
- What is the purpose of an indemnity clause in a contract?
- How often are punitive damages awarded in breach of contract cases?
You might find the following table helpful if you would like to learn about specific regulations in different states:
|South Carolina||North Carolina||Florida|
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