Demand letter

Demand letter,

Definition of Demand letter:

  1. A demand letter is a formal, professional document sent by one party to another requesting payment or other action to right a wrong. The recipient may be in financial default, may have breached a contract, or may not have followed through with an obligation.

  2. Demand letters are usually written by a lawyer and are frequently used in business before the aggrieved party takes legal action against the recipient. They are not, however, a requirement to take the recipient to court.

  3. Formal letter from an attorney on behalf of a client, demanding payment or some other action from another party. Although commonly not a legal necessity in filing a suit, a demand letter is sent usually to settle the matter without litigation or to put pressure on the other party. In general, a demand letter states (1) what payment or action is demanded, (2) why, (3) how the payment or action may be effected, and (4) a time limit. It usually also carries an express or implied threat that otherwise a court case will be instituted forthwith.

How to use Demand letter in a sentence?

  1. Demand letters outline the damages, the demand for restitution, a deadline, as well as any consequences if the conditions are not met.
  2. Citi Bank had provided a large loan to Johns business in which he was behind on payments by six months, so they sent him a demand letter laying out how much he needed to pay by the first of the month in order to avoid legal action against him.
  3. The demand letter was received by the bankruptcy client who then forwarded it to us, who then asked the debt collector to not contact our client directly again.
  4. The letter requests some form of restitution to the aggrieved party and is often preceded by amicable attempts to remind a recipient of the obligation.
  5. The rental agency issued a demand letter to the customer stating that he would be subject to further litigation if he did not satisfy the delinquent charges that he accrued during his rental term.
  6. A demand letter is a formal, professional document sent by one party to another requesting payment or other action to right a wrong.
  7. Most demand letters are written by lawyers.

Meaning of Demand letter & Demand letter Definition