How to Write a Demand Letter

What Is a Demand Letter?

A demand letter is a formal written document sent to another party requesting specific action, typically payment or resolution of a dispute. It serves as both a clear statement of your grievance and a final attempt to resolve the matter before pursuing legal action.

Unlike casual correspondence, a demand letter follows a structured format and includes specific elements that demonstrate the legitimacy of your claim. It puts the recipient on formal notice that you're serious about resolving the issue.

Essential Elements of a Demand Letter

Every effective demand letter should include these key components:

1. Your Contact Information
Include your full name, address, phone number, and email. This shows you're a real person who can be reached for negotiation.

2. Recipient's Information
Use the correct legal name of the person or business. For companies, address it to a specific person when possible (e.g., "General Counsel" or "Customer Service Manager").

3. Date
Always date your letter. This establishes a timeline and is important for any statute of limitations considerations.

4. Clear Statement of Facts
Describe what happened in chronological order. Be specific with dates, locations, and amounts. Stick to facts—avoid emotional language.

5. Legal Basis (If Applicable)
Reference any relevant contracts, warranties, consumer protection laws, or other legal grounds for your claim.

6. Specific Demand
State exactly what you want: the dollar amount, the action to be taken, or the specific resolution you're seeking.

7. Deadline for Response
Give a reasonable timeframe (typically 10-30 days) for the recipient to respond or comply.

8. Consequences of Non-Compliance
Clearly state what you'll do if they don't respond—usually pursuing legal action, filing complaints, or other remedies.

Tone and Language

The tone of your demand letter matters as much as its content:

Be Professional, Not Emotional
Even if you're angry, keep your language formal and businesslike. Emotional outbursts undermine your credibility and can hurt you if the letter is used in court.

Be Firm, Not Threatening
State your position clearly and the consequences of non-action, but avoid language that could be seen as harassment or extortion.

Be Specific, Not Vague
"You owe me money" is weak. "You owe me $2,347.50 for services rendered per our contract dated March 15, 2024" is strong.

Be Concise, Not Rambling
Judges and busy executives appreciate brevity. Get to the point quickly.

Common Mistakes to Avoid

1. Making Threats You Can't Follow Through On
Don't threaten to sue for $1 million if your actual damages are $500. Don't threaten criminal prosecution unless you've consulted with law enforcement.

2. Sending It to the Wrong Person
Research the correct recipient. A letter to "Customer Service" may never reach decision-makers.

3. Forgetting to Keep Copies
Always keep a copy of your letter and proof of delivery.

4. Being Too Aggressive or Too Passive
Find the middle ground between "I'd appreciate if maybe you could possibly consider..." and "PAY UP OR ELSE!"

5. Including Factual Errors
Double-check all dates, amounts, and facts. Errors undermine your credibility.

After You Send the Letter

Once your demand letter is sent:

• Wait for the deadline to pass before taking further action
• Document any response you receive
• Be prepared to negotiate - the first response may be a counteroffer
• If no response, proceed with your stated consequences (small claims court, regulatory complaint, etc.)