Demand Letter Template Sample | Lawyer

Operating a business is challenging without having to incur costly court litigation for another party’s breach of contract. A breach of contract attorney may draft a demand letter before initiating litigation to avoid litigation expenses. A demand letter creates an opportunity for the parties to understand each other’s position and possible settlement. A basic demand letter has these three components:

• Specific contract term(s) at issue
• Specific reasons for the demand letter
• The money amount you’re demanding

Below is a demand letter template sample. The sample template does not meet federal and states legal requirements; therefore, it is important to consult with a business contract lawyer before terminating a contract.

Demand Letter

[Insert Company Letterhead]
CONFIDENTIAL – FOR THE PURPOSES OF SETTLEMENT DISCUSSION ONLY

[Date]

CERTIFIED MAIL OR EMAIL RETURN RECEIPT

[Company Name]

[Company Address]

Attention: [Responsible Party]

Dear:

In accordance with the Agreement dated: [enter execution date], [Your Company Name] has performed all its obligations by [describe how the obligations were performed]. Regardless of this, and repeated requests, [Addressee Company Name] has not paid $[outstanding amount] and therefore is in breach of the Agreement. While will file a lawsuit against [Addressee Company Name] asserting these claims, we hope to achieve a mutually acceptable resolution outside of public litigation.

The matters included in this letter are completely confidential and are intended solely for settlement purposes. They may not be used for any other purpose or in any other legal proceeding unrelated to this case. This is pursuant to [Civil Regulation or Statute]. [Your Company Name] reserves all rights to the matters in this Agreement.

To honor the legal requirements, [Addressee Company Name has a legal obligation to preserve and maintain any all information, materials, and documents in any firm that may be remotely relevant to the breach of the Agreement.

[Addressee Company Name] should preserve all documents, information, and materials concerning: [insert list of related topics here].

We request a good-faith response to this letter by close of business by no later than [date]. If by this time we have not received word from [Addressee Company Name], we have a right to pursue all legal action up to and including formal litigation.

Sincerely yours.

Jane Doe, Title

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