What to Include In a Demand Letter

There are a few key steps to follow when sending a demand letter in Alberta to ensure it is clear, professional, and legally effective. Whether it’s for an unpaid debt, breach of contract, or another legal matter, the process is very similar.

First, gather all relevant information and evidence before drafting the letter. This could include business contracts, invoices, emails, or any other communication related to the issue at hand. The more documentation you have to support your claim, the stronger your position will be.

When drafting the demand letter, start by including your personal information at the top, including your full name, address, phone number, and email. Then, address the letter to the individual or business you are making the demand to, including their full name, address, and any other relevant contact details. Don’t forget to date the letter to ensure there’s a record of when it was written and sent.

In the body of the letter, begin with a brief statement of facts outlining the situation that led to your demand and the action required. It is essential to stick to the facts in this section. Describe what was agreed upon and what went wrong. After that, clearly state your specific demand, whether it’s a payment, the completion of a service, or another remedy. Be precise about the amount of money or the exact resolution you expect.

It’s important to give a clear deadline for the other party to comply with your demand. In Alberta, a timeframe of 10 to 14 days is generally typical, but this can vary depending on the nature of the issue. Additionally, you should clearly state the consequences of non-compliance. This could include further legal action, additional costs, or damage to your business relationship.

Give the recipient formal notice that you are prepared to take reasonable legal action if they do not meet your demand by the specified deadline. This could include filing a claim in Small Claims Court, seeking mediation, or engaging in arbitration. Be specific about what action you plan to take.

End the letter with your contact information in case the person or recipient wishes to discuss the matter further, and sign the letter with your printed name below the signature.

Throughout the letter, it is vital to maintain professionalism and avoid using threatening or aggressive language. The demand letter may be used as evidence if the dispute goes to court, so it’s essential to appear reasonable and fair while still being firm in your demands.

Should You Use a Lawyer to Write a Demand Letter?

Often, lawyers will write demand letters on behalf of their clients. While you are not required to use a lawyer to write a demand letter, a lawyer can ensure that the demand letter is professionally written, legally sound, and tailored to your specific situation. They can also advise on the best course of action and potential legal consequences. A lawyer will also make sure the letter includes all necessary legal references and consequences, making it clear that you are serious about pursuing the matter.

Getting a legal opinion is especially advisable if the issue is complex, involves significant amounts of money, or if the other party is likely to respond aggressively. In these cases, a letter from a lawyer may carry more weight and prompt quicker action. They can also help you avoid potential mistakes, such as admitting fault or making overly aggressive demands, which could hurt your case if it proceeds to court.

What Is the Legal Significance of Demand Letters

First Step Toward Resolution

A demand letter often marks the beginning of an attempt to resolve a dispute without going to court. It gives the recipient a formal opportunity to address the issue before the opposing party takes any legal action. Disputes can often be settled after receiving the letter, offering a hopeful path to resolution and saving both parties time and money.

Establishes a Record

The demand letter creates a paper trail, documenting the sender’s efforts to negotiate and resolve the issue amicably without possible litigation. If the case eventually goes to court, the letter can be used as evidence to show that the sender made reasonable attempts to settle the matter outside of litigation.

Clarifies Legal Position

It clarifies the legal stance of the sender, outlining what the issue is and what action is expected from the recipient. This helps set the stage for future negotiations and establishes the seriousness of the sender’s claims.

Satisfies Legal Requirements

In some cases, sending the opposing party a demand letter is a legal requirement before filing certain types of lawsuits. For example, in many contract disputes, a party may be legally required to give the other party a chance to resolve the issue before proceeding to court. Failing to send a demand letter can sometimes result in a case being dismissed or delayed.

Sets the Tone for Settlement

It can encourage the recipient to settle the matter quickly, especially if the letter is well-constructed and outlines the potential legal risks they face if they don’t comply. This can lead to a faster resolution, avoiding the costs and complexities of the litigation process.

Demonstrates Good Faith

Courts often look favourably on the demand letters from parties who have made an effort to amicably resolve their disputes without immediately resorting to legal action. It shows good faith in trying to settle the issue before seeking judicial intervention.

How to Respond to a Demand Letter?

When you receive a demand letter, it’s important to respond thoughtfully and professionally. First, take a deep breath and read the demand letter carefully to understand the sender’s claims. This does not mean you are going to court!

The letter will outline specific demands, such as payments or fulfilling a contractual obligation, and often includes a deadline for your response. Take note of the key points and any legal consequences mentioned.

Next, evaluate the validity of the claims. Compare the sender’s statements with your own records, contracts, or communication. Determine if their demands are reasonable, partially valid, or completely unfounded. If the situation is complex or the demand involves legal jargon you’re unsure about, consulting an attorney is a smart move. A lawyer can help you understand the legal implications and guide you in drafting a proper response.

It’s crucial not to ignore the demand letter, even if you think the claims are baseless. Doing so could escalate the situation and lead to legal action from the other side. Responding promptly within the notice and given timeframe shows good faith and may prevent further complications.

What If You Don’t Get a Response?

If you don’t receive a response to your demand letter, you have several options for how to proceed, depending on the nature of the dispute and your goals. Here’s what you can do if the other party ignores your demand letter.

Send a Follow-Up Letter

Before taking any formal legal action, consider sending a follow-up letter. It can act as a reminder and reinforce that you are serious about your demands. In this letter, reiterate your original demand, state that you have not received a response, and provide an additional but firm deadline for the recipient to comply. This follow-up letter can emphasize that you are prepared to take further legal action if the matter isn’t resolved.

Review the Situation

Make sure your initial demand is valid and that you have the necessary documentation to support your claims. If any new information has come to light, adjust your approach or seek further advice.

Ensure that the original demand letter was properly delivered. If sent by regular mail or email, it’s possible that it was overlooked or got lost. If necessary, consider sending a follow-up by registered mail or through courier services that provide proof of delivery.

Seek Legal Advice

If you haven’t already, this may be the time to consult a lawyer. A lawyer can help you evaluate your next steps and determine if pursuing legal action is in your best interest. They can also help draft a further agreement or more formal letter or represent you if the matter proceeds to court.

Consider Negotiation or Mediation

If you are still open to an amicable resolution, you can offer mediation or negotiation. This could involve reaching out to the other party to see if they’re willing to engage in alternative dispute resolution, such as mediation or arbitration, or give them an option for alternative resolutions such as setting up a payment plan.

File a Lawsuit or Legal Action

Depending on the nature of the dispute and the amount of money involved, you can pursue court action and file a claim. For disputes involving amounts up to $100,000 in Alberta, you can file a claim in Small Claims Court. The process is designed to be more accessible and less expensive than higher courts. For larger disputes or more complex cases, you may need to file your claim in the Court of King’s Bench of Alberta. Once legal action is filed, the other party will be formally notified, and they will be required to respond.

This should only be done with discretion. If you win a court judgment but the other party still refuses to comply, you can take further steps to enforce the judgment. This could involve garnishing wages, placing a lien on their property, or seizing assets.

Don’t let unresolved issues linger. Draft your demand letter today and take the first step toward resolving your dispute on your terms. Contact our Calgary civil law firm today to get started.