A demand letter (“Lawyer letter” referred to by ordinary people) is usually issued by a lawyer representing his client to the counterparty in cases of disputes, such as breach of contract, debt recovery, tort, and personal injuries The letter is served to the intended defendant before the official claim is brought to:
- describe the situation and clarify our position
- put forward our demand and settlement offer
- warn the counterparty regarding the legal consequence if the demand is not met
A demand letter has a hidden meaning that “I have hired a lawyer, and I am prepared to take legal action and pursue your legal responsibility”. A demand letter has always been an effective starting point for dispute resolution. Dealing with disputes in a proper manner can improve the chances of reconciliation, avoids unnecessary legal costs, and maximize the protection of the interests of both parties.
