What is a letter of demand and why is It used?

A letter of demand is a formal notice notifying a party that monies are owed or demanding payment for damages owed. A letter of demand may also be used when a party has performed work inadequately and further work, or some other remedy is needed to remedy a problem, or a term if a contract has been breached and remedy is required.

A letter of demand informs the offending party that if certain action is not taken by the time frame stipulated in the letter that court proceedings will be commenced. A letter of demand would also clearly outline what the other party needs to do to comply with it.

The Civil Procedure Act in Victoria requires all parties to use reasonable endeavours to resolve the issue before issuing the proceedings. This is one part of the overarching obligations under the Civil Procedure Act in Victoria. The letter of demand goes someway to satisfying the issuing party’s obligations under that Act.

If you think you need a letter of demand we can prepare one for you.

If you would like assistance, please contact Wollerman Shacklock Lawyers on (03) 9707 1155 or admin@wslegal.com.au.