How to Write an Effective Demand Letter
What is a Demand Letter:
A demand letter (in some cases referred to as a collections letter, or a cease & desist letter) is a formal letter sent from one party to another to demand that a particular action be carried out by a certain date, and describing the consequences if it is not.
In many cases, a demand letter will relate to the collection of a debt owing to the party writing the letter, but it could also relate to the return of stolen property / belongings, ceasing trespass on private property, or compensation for damage to property.
The most effective demand letters are polite but firm, and leave no ambiguities as to what you are looking for, and the timeline for when it must happen by.
How to Write An Effective Demand Letter:
The best way to begin a demand letter is by outlining the basic information giving rise to your demand.
For example, if your demand relates to money owed to you for work that you did that remains unpaid, start by describing the money that is owed to you, the work/services that were performed to incur the debt, the dates and any invoices relating to the work, and when the money became due. Or, if your demand relates to trespass, outline the dates the trespass occurred, and the nature of the trespass.
Next, describe in very clear terms what your demand is. For example, “payment of $20,000.00 for unpaid construction invoices no. 123 and no. 124”, or “cease of trespass on the property located at 123 Oaktree Ln.”
Next, enclose any relevant supporting documents relating to your claim, for example, copies of invoices, emails where the other party acknowledged the debt owing or ordered the work, pictures of damage to your property from tresspass, etc.
Finally, give a firm deadline for when you require your demand be met by. Leave no ambiguity as to this date.
You should also include a warning as to the consequences of your demand going unmet. Usually, this will be a statement indicating your intention to file a civil claim in court to enforce your demand through litigation, and your intention to claim additional costs such as accrued interest, legal costs, etc.
One approach that is often effective is to include an offer/compromise in your demand letter. For example, if your demand relates to debt owing, indicating that you will waive any accrued interest, legal costs incurred to date, or perhaps even a portion of the original debt owing to you if the other party complies with the demand within a certain date. In other words, taking a “carrot and stick” approach.
With the above guidelines in mind, you should be able to write an effective demand letter. You should also be better equipped to understand the strategy behind any demand letters you may have received yourself!
Are Demand Letters sent by a Lawyer more effective?
While you can write your own demand letter, it is no doubt true that demand letters prepared and sent by a lawyer on law firm letterhead carry more weight behind them. The reason for this is two-fold:
First, it shows you are serious about your demand, and have consulted with a lawyer, who has no doubt given your matter a review and provided some preliminary legal advice regarding its merits before writing the letter.
Second, it shows that you have sunk some “skin into the game”, and have already invested some money into legal fees. You are therefore more likely to actually proceed with litigation and file a claim against the recipient of the letter if they let the demand letter goes unanswered.
Kingston, Ontario lawyer Maxwell Putnam of Limestone Law offers affordable drafting of Demand Letters at a flat fee, all-inclusive rate of $250.00 + HST.
Contact Limestone Law to discuss your matter and find out if a demand letter written by a lawyer would be appropriate in your specific circumstances.
Legal Disclaimer: This blog post is for general legal information purposes only, and is not intended to be legal advice. This blog post should not be relied upon as legal advice. It is recommended that you contact a lawyer to discuss your specific situation and receive legal advice regarding any specific issues you may have.
