Demand Letter: What to Know Before Saying Yes

Drag to rearrange sections
Rich Text Content


Often in business, creditors do not get the loan amount on time. Therefore, private finance companies and banks have to suffer a great deal of loss. If you want to safeguard your firm from such clients, then take the help of expert attorneys. Professional attorneys send a legal demand letter on your behalf. However, it is essential to know about a cease and Desist letter in detail. This article includes basic information about the letter of request and how to formulate one. Besides, you will also acknowledge several benefits of these letters in detail.

After all, what is a Cease and Desist letter?

A demand letter is a legally drafted letter by a corporate attorney that claims demanding restitution. Hence your debtors have to pay the obligations to which they had agreed beforehand. The cease and desist letter is formed after one of the parties breaches the contract. 

While forming a letter of demand, the corporate attorney includes the relationship between the firms. Next, they try to explain the problem that has occurred between the two parties. Attorneys then try to solve the problem by focusing on how the liable party fulfills its terms. Professionals then demand the debtors when they will pay back the money to which they are liable. 

When should you send a letter of demand?

An obligation of the other party

Mostly, a demand letter is sent to a party who is liable to pay you a certain sum of money. However, you can even send them if another party is obliged to you. For example, you have asked a company to renovate your office, but they couldn’t complete the project on time. In such cases, you can draft a letter of demand, including threats for future lawsuits. 

Insurance claim for an injury

The negotiation process in an insurance claim starts after the submission of a letter of demand. Initially, the letter includes facts regarding the cause of the injury. This influences the insurance company to pay the liable sum of money to the victim. Usually, these letters include supportive documentation viz. photographs, doctor’s statements, medical bills, etc. 

What happens after the submission of the letter of demand?

The party pays in full

First things first, such cases rarely happen. Nevertheless, when a party offers to pay in full, you need to sign-on the release of liability bill. 

The party provides a counter-offer

Most of the time, the third party is likely to offer a sum that is less than the liability amount. You can either take the money or can send another letter of demand. 

The party rejects the letter of demand

If the insurance claims have no support, then the company may reject the letter of demand. On the other hand, corporate organizations have different modes of response. For instance, they can say no to a letter of demand in a polite, hard, or aggressive manner. You can file a lawsuit against a firm after they even turn down the letter of demand.

Why should you hire an attorney?

  • Expert attorneys know different jargon and use technical terms to make the letter look professional.
  • Professionals can easily help you to raise a lawsuit against a firm that hasn’t fulfilled its liabilities.
  • Attorneys know when and how to send a letter of demand, which has a great effect. 


Sending a legal demand letter to the second party is not a new concept in the world of business. Nevertheless, most of the corporate employees and business owners do not know the right criteria to do so. Hence, it is essential to hire a corporate attorney. These professionals will help you to draft the letter professionally. Furthermore, they will also assist you throughout the legal process. Consequently, you will get full payment for your losses or claims without much hassle.

Drag to rearrange sections
Rich Text Content

Page Comments