A demand letter has one job: make the reader pay before you sue. The version that works isn't the angriest one - it's the one that reads like the next step is court, calmly.
What most demand letters get wrong
- Emotional language. "Your outrageous conduct" tells the reader they're dealing with an amateur.
- No calculation. A number without arithmetic behind it is a starting point for a negotiation, not a demand.
- No deadline. Without a date, there is no urgency.
- No consequence. The letter has to tell the reader what happens if they ignore it.
The four-part structure
1. Facts, in order, numbered. Dates, amounts, contract references. No adjectives.
2. Legal basis. One sentence. "This is a breach of Section 4 of our MSA dated [date]" or "This is an unpaid liquidated sum."
3. The demand. A specific amount, a specific action, or both. Include the arithmetic.
4. The deadline and the consequence. "Payment by [date]. In default, we are instructed to commence proceedings without further notice."
Send it right
Email plus registered mail. Same-day. Reference "WITHOUT PREJUDICE" if the letter is a settlement communication in your jurisdiction - it keeps the door open to negotiate.
Draft one with the Demand Letter tool.