demand letter
Definition
A demand letter is a formal written notice you send to someone telling them they owe you something, whether that's money, a specific action, or a stop to harmful behavior. It lays out your position clearly, explains what you want, and gives a deadline for them to respond before you take legal action. Courts often expect you to send one before filing a lawsuit, so it shows you made a reasonable attempt to resolve things first.
Example
If a client refuses to pay a $5,000 invoice after several reminders, you might send a demand letter stating they owe you that amount and must pay within 30 days or you will pursue them in small claims court.
Watch Out
Anything you write in a demand letter can be used against you in court, so be honest, stick to the facts, and avoid making threats you are not prepared to follow through on.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.