In the event of a breach of contract, the quickest way to settle a dispute is to issue a Demand Letter, which implies litigation if the demand is not satisfied.
If someone has a legal obligation towards you that they haven't fulfilled, a carefully drafted Demand Letter on your part can set everything in motion leading to a legal claim.
You can use a Demand Letter for several purposes. Most commonly, however, it is a request for payment or debt owed. This type of Demand Letter should explain the debt incurred, the amount due, and the original due date.
You can use a Demand Letter for any demand, such as reminding a company or person of a failure to deliver a service paid. After the letter is sent, you can expect the recipient to comply or submit a counteroffer, after which you can attempt to settle.
Depending on your state, a Demand Letter may also be known as:
Essentially, anyone who has to make a demand for a debt or service owed can use a Demand Letter to do so. In addition to that, the Demand Letter is also frequently used in insurance claims. If a debtor's check was returned for NSF, you could issue a Demand Letter and demand the payment anew.
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Your Demand Letter should be professional and not threatening, or it could have the opposite effect you have in mind.
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As the sender, you must sign the Demand Letter. Notarization is not necessary.
After you have printed out your Demand Letter created on 360 Legal Forms, sign it and save a copy for your records. The best way to deliver the Demand Letter is to let your attorney handle it, show it in person, or send it by registered mail or a shipping company with signature verification. Emailing or texting the Demand Letter is not recommended.
In many cases, there is no need to hire legal services if the matter is relatively simple. However, in the event of a more complicated insurance claim, you might want to do just that, especially if the reward can be much larger than the cost.
If the recipient of the Demand Letter is reasonable, then you can expect a settlement. The person may take some time to respond with a counteroffer or retain an attorney. What can help in this regard is to add the settlement terms in your Demand Letter and ask the recipient to agree to it without a back and forth negotiation. Overall, the typical time frame leading to a settlement can be anywhere between two and six weeks.
A Demand Letter requires a specific tone both concise and non-threatening. The goal is to tell your side of the story supported by as much evidence as possible. If you are a landlord who is owed back rents, a lease agreement may be very helpful to include as a supporting document. Apart from being honest and truthful in your Demand Letter, it can also be helpful if your demands are reasonable and commensurate to the damages suffered.
The fact is that the recipient of your Demand Letter may choose to ignore it completely. If you do not get a response, you could press forward with litigation, which is implied in a Demand Letter as I demand this or else. You could send another Demand Letter but there is little reason to expect a better outcome the second time around.
When writing a Demand Letter, you want to avoid threatening the recipient, nor do you want to disparage or disrespect. Generally, a negative tone would likely prove counterproductive. A judge or his or her law clerk who reads your Demand Letter, if it comes to that, could form a negative opinion of you.
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