The demand letter is a formal letter sent to request another person or a business to fulfill their obligations, to pay an amount of money that is due or to stop doing certain actions , an attack on one’s reputation for example.
The demand letter must be made in writing and is intended to inform the other person or the company of what is being claimed. It also aims to give him a reasonable time to fulfill his obligation. The length of time considered reasonable to give to the other party varies widely and can vary from a few hours to several days or weeks, depending on the circumstances.
A demand letter is generally not compulsory before taking legal action, except in two circumstances: when a seller requests the cancellation of the sale of an immovable and when a buyer notices a hidden defect in a building he acquired. In these cases, the sending of a formal notice is compulsory and its absence prior to the legal request will make you lose your right to repossess your building or to claim damages due to the hidden defect discovered.
It is always more prudent to send a demand letter to the other party before filing a lawsuit. The demand letter may indeed be sufficient to settle the case and convince the other party to fulfill its obligations without a legal claim being necessary, thus limiting the costs of any litigation. The demand letter also serves as a starting point for calculating interest in the event that a legal claim is necessary. Interest will be calculated at this time from the date of notification of the formal notice, and not from the date of the legal claim or judgment to be rendered.
It is in your best interest to consult a lawyer for the drafting of a demand letter. A letter from a law firm and sent by a bailiff demonstrates the seriousness of your complaint and your steps and can greatly facilitate the resolution of the dispute with the other party. The lawyer will also be able to determine the exact extent of the problem you are facing and will be able to determine what is the reasonable period of time to allow the other party to fulfill their obligations. In the event that the other party opens to negotiate a settlement, they will ultimately be able to conduct these negotiations effectively in order to arrive at the settlement that is most beneficial to you and thereby avoid the costs of filing a lawsuit.