What is a Demand Letter and How It can Benefit Your Business
A demand letter is a letter that is sent to the person or company who owes you money or is otherwise not fulfilling some sort of obligation.
A demand letter is a formal way of demanding payment or other remedy from a person or business. It should be written in a way that shows the person or company that they are not just being asked for payment, but they are being told to pay up.
What is the Process of Sending a Demand Letter?
Lawyers usually recommend that a demand letter is sent to the offending party as soon as possible. The letter should be concise and to the point, without any threats.
Demand letters can be sent by email and regular mail, however, to best prepare for possible legal action they should be sent by registered mail which allows the sender to see if/when the letter is actually received.
Demand letters in Ontario and most other provinces should always include:
– The date of the letter
– The sender’s contact information
– A statement explaining why the recipient is receiving the demand letter
– A breakdown of the money owed or a description of the default or obligation
– A date and time that the money must be paid or the default or obligation must be remedied
What are the Different Types of Demand Letters?
A demand letter is a formal request for payment. Demand letters can typically be classified into three types:
1) Demand for payment of an outstanding debt.
2) Demand for performance of a contract.
3) Demand for performance of a duty or an obligation imposed by law.
Demand letters are used to make sure that the recipient will take the necessary action to satisfy the request in the letter. It is important to keep in mind that demand letters are not legally binding and cannot be enforced by law, but they do carry some weight when it comes to establishing legal rights and obligations between two parties if a matter does end up in court.
Some of the most common and useful types of demand letters are:
–Demand for Payment for Services Rendered
-Demand for Payment of Residential or Commercial Rent
-Violation of a Residential or Commercial Lease Notice
