Definition of Demand letter:
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.
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.
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?
- Demand letters outline the damages, the demand for restitution, a deadline, as well as any consequences if the conditions are not met.
- 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.
- 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.
- 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.
- 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.
- A demand letter is a formal, professional document sent by one party to another requesting payment or other action to right a wrong.
- Most demand letters are written by lawyers.
Meaning of Demand letter & Demand letter Definition