A Demand Letter is a letter that expressly states a legal claim and makes a demand for compensation
(restitution) for a breach of contract or legal wrong committed by the recipient. The demand letter
sets out: why the compensation is being sought; how it should be provided (e.g. payment in full,
payment over time, etc.); and a deadline and directions for reply. Demand letters are frequently used
to maintain some goodwill between business parties and they often encourage payment in order to
avoid expensive litigation. Most demand letters contain the “threat” that if the proposed condition is
not adhered to, the next communication between the parties will be through a formal legal
proceeding. Wise Law BV has demand letters for the following situations: debt owed, NSF check,
action required, and stopped payment on a check.
