Meaning and example of Demand letter (3 examples)


Today, I will share with you the meaning, example, and how to write a demand letter or demand notice/note.

What is a Demand Letter?

A demand letter is a formal letter addressed to a person who by act or omission failed to fulfill his legal obligation, as a result, the innocent party suffers damages.

A demand letter is always demanding the addressee to rectify his actions within a specific time before the innocent party takes legal action against him.

In most cases, a demand letter is drafted by a lawyer but, for its simplicity, even a layperson can draft it.

A demand letter is also known as a demand notice or demand note.

Importance of a Demand Letter

The following are the importance of demand letter;

  1. It encourages out-of-court settlement
  2. It informs the addressee nature of the claim at the early stage.
  3. It will help you to organize your case.
  4. compliance i.e Failure to issue a statutory demand letter, the court shall dismiss your case.

how do you write a demand notice?

Generally, there are no strict rules which govern how to write a demand letter.  Mostly the style of the demand letter/ demand note differs according to the nature of the claim. As a matter of practice, the following must be considered when writing a demand notice:

  1. Keep it looks impressive
  2. use the proper language that the addressee will understand better
  3. Start with your key points
  4. explain your claim clearly
  5.  make your demand specific
  6. set the deadline
  7. tell the addressee what will happen if he/she will disregard your demand
  8. The length of your demand letter should be like a mini-skirt, “long enough to cover important parts and short enough to attract those who are interested”
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Example 1: Example of the  demand letter

DATE……………….
Ref. …………………….
AAA  Limited
222 West Street
WESTOWN NSW 2222

RE:      DEMAND LETTER FOR ……………………… TO AAA LIMITED:

I am acting on behalf of A AND B, the Managing Director XYZ Limited (my client) has instructed me to demand from you as I hereby do and address you in the following terms:

  1. That you will remember A AND B, the Managing XYZ Limited (my client) engaged to you to ……………………………..
  2. That the amount of 70% was paid on ……. As the ………….. costs.
  3. That the ……………….. began on ……………… when the ……………………….
  4. That all ……………………………….That my client facing a serious complaint from ………………, and they have grown a bad reputation from …………….. on insensitive and unreliable …………………
  5. That because of your negligence my client demand from you USD ……………. as contractual penalties for non-performance of …………….. and my client lost USD ………… in the value of …………………. As compensation for the damage incurred.

TAKE NOTICE that if you fail to put into effect the requirements of this DEMAND NOTE, or other mutually agreeing with my client through my office into which you will remedy my client, my client’s further instructions to me to institute legal proceedings against you in which you will be compelled to repay the outstanding amount plus interest thereof, damages suffered by my client, and other legal consequences arising from those legal proceedings.

Respectively,

…………. Advocate.

CC. Client.

NB: All correspondences should be directed to the above address.

Example 2: Example of the  demand letter for payment

Michael Johnson
AAA Law Firm
222 West Street
WESTOWN NSW 2222

​12 October 2021

Tony Andrew
18 East Street
WESTOWN NSW 1111​

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DEMAND NOTICE

 RE: NOTICE OF CLAIM OF PAYMENT OF THE SUM AMOUNT OF TSHS 100,000,000/=

We are acting under instructions from our client BRENDA ISACK to demand from you, JOHN MATHEW  as we hereby do;

That, our client had a sale agreement with you and she whereof sold you goods valued Tshs 100,000,000/= for which you have not yet paid.

Our client’s frantic efforts of making a follow-up for the payment of the said amount arising from such transaction ended in vain.

NOW THEREFORE upon written instructions from our said client; we DO HEREBY make formal demand upon you JOHN MATHEW  to pay forthwith to us on behalf of our client the sum amount of Tanzania Shillings 100,000,000/=.

TAKE FURTHER GOOD NOTICE THAT upon your failure to make full payment of the above-stated sum and/or make suitable arrangements for the payment of such debt within 7 (seven days) from the date hereof, we will have to institute legal proceedings in a court of law against you, holding you responsible for all damages, costs and other attendants thereto without further notice.

This demand notice is without prejudice and shall not be construed as a waiver of our client’s other remedies under the law.

Any communication with regard to this matter shall be channeled through our Office.

Yours Faithfully,

MATHIAS SMITH

A AND CO, ADVOCATES

Example 3: Example of the  demand letter for breach of contract

Michael Johnson
AAA Law Firm
222 West Street
WESTOWN NSW 2222

​12 October 2021

Tony Andrew
18 East Street
WESTOWN NSW 1111​

 

RE: DEMAND NOTE FOR THE PAYMENT OF USD 5,885 TO  THE DUTCH SPONSORS

Refer to the above heading.

We represent ABC Company Limited in this matter and have been instructed to demand from you as follows:

That, you have failed to meet our contractual obligation by not providing an alternative motor vehicle following the breakdown of your car on 24th December 2020, as per your contract you have arrogantly and maliciously decided not to refund our client of the amount you have received and additional costs that they have incurred.

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For these reasons we demand the following from you;

  1. Refund of money equal to a 5 days journey which is USD 675/– (six hundred and seventy-five).
  2. Additional costs of which we used to hire alternative two motor vehicles which are USD 1,040/- (one thousand and forty).
  3. Damages (General Damages) for loss of business name and reputation USD 3,000/- (three thousand).
  4. Legal fees (drawing and consultation) which is USD 1,140/- (one thousand one hundred and forty).
  5. You are in clear breach of your contract and we hereby demand a total of USD 5,855/- (five thousand eight hundred and fifty-five) within fourteen (14) days from receipt of this letter.

You may get in touch either with our offices or with our client for further clarification and/or settlement.

Failure to comply with our demands, we shall take legal action against you.

Our client reserves the right to further institute criminal proceedings against you for obtaining money by false pretense under the criminal law.

Note that in default of our demand we have firm instructions to recover the same through whatsoever legal means possible, including but not limited to the engagement of debt collectors which we have consulted and serve a copy of this letter as indicated hereunder and/or institution of legal proceedings against you.

In the event, any such additional costs shall be claimed including aggravation of the damages so caused to our client.

Yours Faithfully,

Michael Johnson

Advocate

see also

Isack Kimaro

Editor-in-chief and founder of sherianajamii.com. Holder of Bachelor of Laws (LL.B) from Mzumbe University and Post Graduate Diploma in Legal Practice from the Law school of Tanzania. Lawyer by profession and blogger by passion.

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