Why demand letter matters?

Why demand letter matters?

A demand letter is usually issued by a lawyer representing the aggrieved party to the intended defendant in cases of disputes, such as breach of contract, personal injuries and recovery of loans. The letter is served to the intended defendant before the official claim is brought with the view to make demands, settlement offers or the requested relief.


Serving a demand letter to the other party is deemed one of the most common ways to save both parties’ costs and time. It minimizes the possibility of litigation and avoids incurring legal costs. A demand letter does not carry hostility to the other party and should not be seemed like a declaration to commence combat.


For example, in a car accident where personal injuries arise, a demand letter acts as a preliminary notification to the intended defendant from the claimant regarding how the accident happened to constitute a tort offence, as well as the claimant’s demanded compensation based on the evidence of relevant expenses. A demand letter in personal injuries can clearly reconstruct the entire scenario with related details. It shows the claimant’s intention of internal settlement and cooperation, and in fact, secures both parties’ interest by holding out an olive branch of compromise.


In cases of breach of contract, a demand letter would comprise the description of the breach, the claimant’s damages and the demand for restitution. The letter here does not only urge the opposite party to fulfill the contract terms and get back on track, but it also expresses the claimant’s high perception of the contract’s value.


Lastly, why are demand letters usually processed by lawyers? Writing a demand letter shows the aggrieved party’s will to corporate while secure his own interest, so lawyers are in a better position to draft a professional, clear, accurate, but relatively mild letter to inform the other party of such purpose and strike a balance between comprising and upholding the client’s interest. Please feel free to contact us at 69776708 for Mr Lam or make an appointment.

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