Demand Letter vs. Cease and Desist: What's the Difference?

People often use "demand letter" and "cease and desist" interchangeably. They're not the same thing, and using the wrong one can weaken your position.

Here's the difference, when to use each, and how to decide which one fits your situation.

Quick Comparison

Feature	Demand Letter	Cease and Desist
Primary purpose	Request payment or compensation	Stop a behavior or activity
Asks for	Money or specific action	Stopping harmful conduct
Common uses	Debts, refunds, damages, wages	Harassment, IP infringement, defamation
Legal power	None (it's a request)	None (it's a request)
Prerequisite to sue?	Sometimes required by state law	Rarely required
Typical sender	Individual or attorney	Often an attorney
Next step if ignored	Small claims or civil court	Injunction or civil lawsuit

What Is a Demand Letter?

A demand letter is a formal written request for payment, compensation, or a specific action. It's the "pay up or I'll take you to court" letter.

Common Demand Letter Scenarios:

• Unpaid debts: "You owe me $5,000 per our contract. Pay within 14 days."
• Security deposit: "Return my $2,500 security deposit within 14 days per [state code]."
• Unpaid wages: "You owe me $3,200 in unpaid overtime under the FLSA."
• Property damage: "Your tree fell on my fence. I demand $4,000 for repairs."
• Insurance claims: "Pay my claim of $15,000 for the covered loss."
• Consumer refunds: "Refund the $800 for the defective product."

The key characteristic: a demand letter asks for something tangible, usually money. It's backward-looking, addressing harm that's already occurred.

What Is a Cease and Desist?

A cease and desist letter demands that someone stop doing something. It's the "knock it off or I'll take legal action" letter.

Common Cease and Desist Scenarios:

• Harassment: "Stop contacting me, my family, and my workplace."
• Trademark infringement: "Stop using our company name and logo."
• Copyright violation: "Stop using our copyrighted photos on your website."
• Defamation: "Stop spreading false statements about my business."
• Breach of non-compete: "Stop soliciting our clients per your employment agreement."
• Neighbor disputes: "Stop dumping yard waste on my property."

The key characteristic: a cease and desist asks someone to stop a behavior. It's forward-looking, addressing ongoing or threatened conduct.

Key Differences Explained

1. What They Ask For

Demand letter: "Give me $X" or "Do this specific thing."

Cease and desist: "Stop doing Y."

A demand letter looks backward at harm that's happened and requests compensation. A cease and desist looks at ongoing behavior and requests it stop.

2. The Escalation Path

Demand letter: If ignored, you typically file in small claims court or civil court seeking a monetary judgment.

Cease and desist: If ignored, you typically seek a court injunction (a judge's order forcing them to stop) or file a lawsuit for damages caused by the ongoing behavior.

3. Legal Requirements

Demand letter: Required by law in some states before filing certain types of lawsuits (consumer protection, lemon law, etc.).

Cease and desist: Rarely required by law, but sending one strengthens your case by showing you gave fair warning.

4. Typical Senders

Demand letter: Frequently sent by individuals without attorneys, especially for small claims. You absolutely can send one yourself.

Cease and desist: More commonly sent by attorneys, especially in IP (intellectual property) cases. The legal authority behind the letter often matters more.

5. Emotional Impact

Both can be intimidating, but they provoke different reactions:

Demand letter: "This person wants my money." The recipient weighs the cost of paying vs. fighting.

Cease and desist: "This person is threatening legal action over my behavior." The recipient weighs the risk of continuing vs. stopping.

Which One Do You Need?

Use a Demand Letter When:

• Someone owes you money
• You've suffered financial damages
• You want compensation for a past wrong
• Your state requires one before filing suit
• The dispute is about payment, refunds, or reimbursement

Use a Cease and Desist When:

• Someone is engaging in ongoing harmful behavior
• Your intellectual property is being infringed
• You're being harassed or defamed
• Someone is violating a contract restriction (non-compete, NDA)
• The primary goal is to stop the behavior, not get paid

Can You Combine Both?

Absolutely. Many letters combine elements of both, and that's perfectly fine. For example:

This combined approach works well when someone's behavior has both caused past damage (requiring compensation) and is ongoing (requiring them to stop).

Key Takeaways

• A demand letter asks for money or compensation; a cease and desist asks someone to stop a behavior
• Neither has legal power on its own - both are formal requests backed by the threat of legal action
• Demand letters are sometimes legally required before filing certain lawsuits
• Cease and desist letters are more commonly sent by attorneys, especially for IP matters
• You can combine both in a single letter when the situation warrants it
• For pure money disputes, a demand letter is what you need

Related Articles

• Can You Send a Demand Letter Without a Lawyer?
• What Is a Demand Letter? Everything You Need to Know
• How to Write a Demand Letter
• What to Do If You Receive a Demand Letter