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Demand Letter

A legal demand letter is a formal document sent to an individual or entity to resolve a dispute before taking legal action. It clearly states the sender's claim and demands that the recipient take a specific action, such as paying money or performing a service, within a set timeframe.

Demand letters are typically written by an attorney on a client's behalf, but an individual can also write one. Sending a demand letter demonstrates a good-faith effort to resolve a disagreement without the time and expense of going to court. In many cases, it can lead to a settlement without ever filing a lawsuit.

 

Common uses for a demand letter

  • Breach of contract: To demand that a party fulfills their contractual obligations or pays for damages caused by the breach.

  • Personal injury: To formally demand compensation from an at-fault party or their insurance company for damages and medical bills.

  • Debt collection: To demand payment for an overdue debt.

  • Property damage: To seek compensation for damage to property.

  • Landlord-tenant disputes: To address issues such as a landlord refusing to return a security deposit.

  • Consumer fraud: To demand a remedy for being misled by a business. 
     

Key components of a demand letter

To be effective, a demand letter should include the following elements: 

  • Statement of the issue: A clear, concise, and factual summary of the dispute.

  • The harm suffered: A detailed description of the damages or injuries incurred.

  • Evidence: Supporting documentation like contracts, invoices, photographs, and medical bills.

  • Specific demand: The exact action the recipient must take, such as a precise payment amount or a required repair.

  • Response deadline: A reasonable date by which the recipient must comply.

  • Consequences of non-compliance: A statement that legal action will be pursued if the demands are not met.

  • Tone: The letter should be professional, formal, and free of emotional or threatening language. 

What happens after a demand letter is sent?

After receiving a demand letter, the recipient can respond in one of several ways: 

  • Comply with the demand: The recipient may agree to the terms, resolving the issue without further legal action.

  • Negotiate a settlement: The recipient may respond with a counter-offer, beginning a negotiation process.

  • Refuse or ignore the demand: If the recipient ignores or rejects the letter, the sender can then decide whether to proceed with a lawsuit. Ignoring a formal demand can negatively impact a party's position if the matter ends up in court. 

The top letter subjects we come across most often:

• Express an intent to sue
• Negotiate, bargain or force compliance
• Breach of Contract issues
• Employer/Employment/Wage issues
• Collection Efforts
• Landlord/Tenant issues
• Slander/Harrassment/Stalking
• Return of property
• End illegal activity or annoyances
• Neighbor problems
• Car accidents
• Personal injury cases
• Medical malpractice
• Ex-husband / Ex-boyfriend problems
• Client defamation
• Wrongful termination
• Municipal complaint
• Real Estate issues
• HOA complaints

Demand Letter

A cease and desist letter is a formal, non-binding notice sent to a party demanding that they stop (cease) an alleged illegal or infringing activity and not do it again (desist). It serves as a warning that legal action may be pursued if the behavior does not stop. 

A cease and desist letter is a versatile tool used in various legal contexts, including: 

  • Intellectual Property Infringement: This is a common application, used to stop the unauthorized use of a trademark, copyright, or patent.

  • Harassment: It can demand that an individual stop unwanted or threatening behavior, including stalking, cyberbullying, or repeated contact from a debt collector.

  • Defamation: The letter can be used to demand a retraction of false statements—either written (libel) or spoken (slander)—that damage an individual's or business's reputation.

  • Breach of Contract: It may be used to formally notify a party that they are in violation of a contract's terms and demand they correct the situation.

  • Unfair Competition: It can warn a competitor to stop deceptive or unethical business practices, such as false advertising.
     

How a cease and desist letter works

  1. Written Notice: The letter formally notifies the recipient of the alleged wrongful conduct, providing clear details and citing the legal basis for the claim.

  2. Warning of Legal Action: It states the potential legal consequences, such as a lawsuit seeking damages or an injunction, if the activity is not stopped.

  3. Encourages Settlement: As a less costly alternative to litigation, the letter is often used to encourage the recipient to comply and settle the matter out of court.

  4. Creates a Paper Trail: Sending a certified letter with a return receipt creates a record that the other party was formally made aware of the issue. This strengthens the sender's position if the matter escalates to court.

  5. Requires Legal Follow-Up: If the recipient ignores the letter, the sender must take further legal steps, such as filing a lawsuit, to enforce their rights. 
     

What to do if you receive a letter

  • Take it seriously. Even though it is not a court order, ignoring it can lead to more serious legal action.

  • Consult an attorney. An experienced lawyer can help you assess the validity of the claims and determine the best course of action.

  • Do not assume it is a "scare tactic." While some letters may have weak claims, others are serious precursors to litigation. You should not ignore the letter without seeking legal counsel. 

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Cease and Desist Letter 

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