final demand
Definition
A final demand is a last written notice you send to someone who owes you money, warning them that you will take legal action if they do not pay within a specific timeframe. Think of it as your official last attempt to resolve the situation before you hand things over to a lawyer or a collections process.
Example
If a client owes you $3,000 for work you completed three months ago and has ignored your previous invoices and emails, you would send a final demand letter giving them 14 days to pay before you file a lawsuit.
Watch Out
Courts often look for evidence that you gave someone a fair warning before suing them, so sending a final demand by certified mail and keeping a copy protects you and strengthens your case.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.