How to write a demand letter for breach of contract?
Asked by: Zola Jenkins DVM | Last update: December 16, 2025Score: 4.8/5 (37 votes)
The demand letter for breach of contract should state the contract terms, the terms that were not performed, and propose resolution by a specific deadline. Because the demand letter may be admitted in court as evidence, the demand letter should have a professional tone and not contain insulting or angry language.
How do you write a strong demand letter?
- Maintain a polite, neutral tone.
- Outline the facts clearly.
- Explain the costs or "damages" you've incurred.
- Make your total demand explicit.
- Ask for more than you want to allow for negotiation.
- Specify a response deadline.
- Explain what you will do if the demand isn't met.
What is a demand letter for a breach of contract?
A breach of contract demand letter is a notice to an individual or party that has failed to perform as specified under a previously agreed upon contract. The letter should identify the party that breached the agreement, the date of the contract, and the specific actions conducted by the violating party.
What not to say in a demand letter?
Don't Be Threatening
While the dispute of payment may have become personal, a demand letter is meant to encourage a desirable resolution. The use of threatening or insulting language may embolden the owner into not paying when they otherwise would have. And remember, a judge may one day look at this letter in court.
Can I write my own legal demand letter?
You can write it yourself. A demand letter is literally what it says, letter that demands something. It's not legally significant. Most people don't take them seriously unless they're from a lawyer, though.
Breach of Contract Demand Letter, EXPLAINED
How can a demand letter backfire?
The demand letter you write might be considered – or actually be – extortion or blackmail; and you could end-up getting sued for way more money than your seemingly well-written demand letter might claim is due you.
How much does it cost to write a demand letter?
Hiring a lawyer to draft a demand letter will incur fees because it requires the time of a licensed attorney to complete the task. ContractsCounsel's marketplace data shows the average demand letter costs to be $380.00 across all states and industries.
How powerful is a demand letter?
Demand letters show the owner that you're serious about getting paid. Sending a demand letter prior to litigation is a sign of good faith in the eyes of the law. In court, the language in your demand letter can support your case. Successful demand letters significantly reduce the cost of getting paid.
What are the risks of a demand letter?
Potential Legal Risks
Demand letters that include threats of litigation, accusations of infringement, recitations of the legal requirements for infringement, and/or a refusal for the marks to co-exist may increase the risk that the trademark holder will be subject to a declaratory judgment action.
What are the disadvantages of letter of demand?
However, sending a letter of demand can have its disadvantages. Depending on the situation, the other party may feel threatened and respond negatively, or they may not respond at all. They might engage a lawyer, or they might even start legal action against you.
How do you prove a breach of contract?
Once the plaintiff proves that a valid contract existed, they must show that they upheld their part. After that, the plaintiff must show that the defendant did not fulfill their obligations. And finally there must be evidence of actual damages that the plaintiff suffered as a result.
What is classed as a breach of contract?
What Is Considered a Breach of Contract? A breach of contract occurs when one party fails to fulfill its obligations as outlined in the contract. That could include something relatively minor, such as being a couple of days late on a payment, or something more serious.
How do I notify a breach of contract?
In a notice of breach letter, you should provide the name of the breaching and non-breaching party. You must also include details regarding the original agreement for which a particular breach has occurred. Explain clearly how the other party breached the agreement.
What is an example of a letter of demand?
The amount remaining unpaid on the debt is $ (amount due). Demand is hereby made that this money be paid. Unless payment of this amount is received by the undersigned no later than (date payment expected), a lawsuit will be brought against you in the commercial claims part of the court.
How do you write a powerful letter?
Write the body of the letter, which provides supporting information and should generally be two to three paragraphs. Each paragraph should make one clear point, and the tone should be professional. Add a concluding statement summarizing the letter's objective and providing the recipient with a call to action.
Can you sue someone who owes you money without a contract?
Even without a written contract, you can still sue someone for money by building a strong case with different types of evidence. Emails, text messages, and other written communications that mention the loan or agreement can support your claim.
What can you not say in a demand letter?
Draft demand letters to encourage resolution by avoiding threatening or insulting language, which may provoke refusal of payment. Such language could escalate conflicts and influence the owner's decision. Additionally, judges may scrutinize these letters in court, so maintain professionalism.
How successful is a letter of demand?
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".
Can I write my own demand letter?
While it's technically possible to write a demand letter yourself, there are significant advantages to seeking the guidance of a legal professional. Here's why. Professional expertise. An attorney specialized in personal injury law understands the nuances of relevant statutes, case law, and procedural requirements.
Do people take demand letters seriously?
Are Demand Letters Serious? Demand letters are absolutely serious, and you should take them seriously. The fact that someone is investing time and resources to send you a formal letter to demand something from you is evidence of their seriousness.
What happens if someone ignores a demand letter?
If someone has taken the time to send a demand letter, then he is most likely serious about pursuing this issue. This is even more true if he hired an attorney to do it for him. If you simply ignore the letter, the plaintiff's next step will almost certainly be to file a lawsuit.
What is the next step after sending a letter of demand?
After sending a demand letter, the first step is to wait for a response by the deadline you provided. If your demand letter worked, you should expect a settlement within a couple of weeks. However, the time you have to wait for a settlement may vary based on different factors.
How long does it take to write a demand letter?
A lawyer typically takes anywhere from a few days to a few weeks to draft a demand letter. However, this timeline can be influenced by factors pertaining to your case, as well as the workload of your attorney and their firm.
Do you have to be a lawyer to send a demand letter?
There is no requirement that states you need an attorney to write a demand letter. You can write and send a demand letter on your own. Consider the following factors when deciding whether or not to hire an attorney to write a demand letter: Cost.
How much will a lawyer charge to write a letter?
The cost of drafting a document letter can vary widely depending on several factors. It's common for lawyers to charge a flat fee for this service, which can range from $100 to $500 or more. The actual cost depends on the complexity of the letter and the experience level of the lawyer.