Demand For Payment Letter Texas

At some point, if your business dispute is not resolved, at least one of the parties will write a demand letter, sometimes referred to as a business to business demand letter or “cease and desist” letter.  For some types of disputes, a demand letter is required in order to file a claim, or to recovery attorneys’ fees in future litigation.  This means that whatever is said in the demand letter will almost likely certainly be read by a judge or jury at some point.  What is and isn’t said, and how it’s said, can be critically important to your case.

However, there is a widely held belief (among non-lawyers) that a proper demand is all that is necessary to resolve a dispute.  I cannot count the number of times that I’ve been asked to “just write a letter.” Unfortunately, things simply don’t work out that way in the real world.

Sample Demand Letter Breach Of Contract

Business To Business Demand LettersIn the rare case where the other side gets a demand, and it convinces them that they need to comply, it will typically be necessary, and always desirable, to prepare some kind of settlement agreement.  Sometimes, a good demand will prompt settlement discussions.  More often, there is no response, or there is an outright refusal to comply.  At that point, a decision needs to be made – do you sue, or not?  This decision needs to take into account the expected evidence, the amount of damages and/or attorneys’ fees which could be recovered, and what other remedies may be available, (in or out of litigation), and whether a judgment is likely to be collectible.

Demand Letter From Attorney Sample

That being said, what does it take to create a good demand letter?  First, you’ll want to make simple declarative statements of fact.  Skip the recriminations, arguments, and rehashing all the prior discussions of the issues.  There are five parts to a good demand:

1) State what happened.  Examples: you failed to pay your account; you caused a car accident; you came onto my property and damaged it; you misrepresented your product; or you failed to complete some agreement.

2) State what legal claims those actions create.  Examples:   Breach of contract; Negligence; Trespass; Misrepresentation; Fraud, or violation of the Deceptive Trade Practices Act.

3) State how you’ve been damaged by the actions those actions.  Examples: the amount due and unpaid on the contract; the damages caused by the car accident; what it will cost to fix the problem, or to place the product into the condition that was represented.

4) Make a specific demand for action, by a specified date.  Examples: Pay $X amount by Y date; stop doing whatever is causing the problem; replace or repair the misrepresented item; or cure the breach of contract.

5) Tell them what you will do if they do not comply.  Examples: You will terminate the agreement;  you will stop providing some benefit; or you will file suit to recover damages, obtain an injunction, or get a court order clarifying each party’s rights and obligations under an agreement.

If you find your business on the receiving end of a demand letter, or if you need to send one, give us a call, because

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