Blog Post

The Purpose of a Demand Letter

York Gaskill • Oct 18, 2023

What Is A Demand Letter?

purpose of a demand letter

What is a Demand Letter?

A demand letter is a letter demanding that the recipient of the letter take or cease a certain action. Demand letters are usually written by an attorney on a client’s behalf. The purpose of a demand letter is to begin legal negotiation between the two parties in an effort to resolve the dispute. Demand letters are often the precursor to filing a lawsuit. If you ever receive a demand letter, it should not be ignored.

What is in a Demand Letter?

Demand letters outline damages, the demand for restitution, and a firm deadline. They also state the consequences that will result if the conditions are not met. When writing a demand letter, keep your goal in mind. The demand letter should be factual, polite, and formal. You are attempting to encourage the other party to assess and handle the situation in a professional way. Common scenarios where demand letters are used include debt collection, contractor disputes, and personal injury claims.

Benefits of a Demand Letter

A demand letter shows the other party you are serious about taking legal action to remedy the dispute. Simply sending the demand letter may end the need for further litigation. According to NOLO, "In as many as one-third of all disputes, your demand letter will catalyze settlement". It can often influence the recipient’s viewpoint and understanding of the risks of not taking action. Demand letters also create a paper trail, which can be useful as evidence if the good faith or reasonableness of a party’s conduct is later called into question. Demand letters can be an effective legal tool if done properly.

Hiring an Attorney to Prepare Your Demand Letter

If you find that you need to send a demand letter to another party, you should consider contacting the team at York Gaskill in Gwinnett County. We are skilled attorneys who are very familiar with this process. We have the legal experience necessary to properly craft your demand letter and ensure that all important points are included. Feel free to call us at 678.697.6789 or email us to discuss your legal needs.

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