Demand Letter Template

What is This?

A demand letter is a formal written communication sent to a person or entity requiring them to fulfill a legal obligation — typically the payment of a debt, performance of a contractual duty, or compensation for damages. It is one of the most commonly used pre-litigation tools in US legal practice. A well-drafted demand letter often resolves disputes without the need for court intervention, saving both parties significant time and expense.

When to Use

• ✓A client or customer owes you money for goods or services delivered
• ✓A business partner has failed to perform their contractual obligations
• ✓You have suffered damages due to another party's negligence or breach
• ✓An insurance company has denied or underpaid a valid claim
• ✓A landlord has failed to return a security deposit
• ✓You need to formally notify a debtor before filing a collections lawsuit
• ✓A contractor has performed defective work and refuses to remedy it

Key Elements

• •Statement of facts — Clear, chronological account of the events giving rise to the demand
• •Legal basis — The contract provision, statute, or legal theory supporting your claim
• •Specific demand — The exact amount owed or action required, with supporting calculations
• •Compliance deadline — A reasonable timeframe (typically 15–30 days)
• •Consequences — Statement that legal action will follow if the demand is not met
• •Supporting documentation — References to contracts, invoices, receipts, or other evidence
• •Reservation of rights — Statement preserving all legal claims and remedies

Legal Significance

In many US jurisdictions, sending a demand letter is a practical or legal prerequisite to filing a lawsuit. Some state consumer protection statutes (such as Massachusetts G.L. c. 93A) require a written demand at least 30 days before filing suit. Even where not legally required, courts routinely consider whether the plaintiff attempted to resolve the matter before litigation — failure to do so may affect the recovery of attorney's fees or punitive damages.

A demand letter also starts or preserves important legal timelines. It can serve as evidence of the date you put the other party on notice, which is relevant to calculating interest, establishing willfulness, and meeting notice requirements under various statutes.

Best Practices

1. 1.Be precise about the amount. Include a detailed breakdown of how you calculated the amount owed — principal, interest, late fees, damages, and any offsets. Vague demands for unspecified sums undermine credibility.
2. 2.Attach supporting evidence. Include copies (not originals) of relevant contracts, invoices, correspondence, photos, or other documentation that supports your claim.
3. 3.Maintain a professional tone. Emotional or threatening language weakens your position. State the facts, the law, and the consequences clearly and dispassionately.
4. 4.Offer a resolution path. Where appropriate, indicate willingness to negotiate a payment plan or alternative resolution. This demonstrates good faith and may accelerate settlement.
5. 5.Send by traceable method. Use certified mail with return receipt requested, or a commercial delivery service with tracking. Keep copies of everything.