Receiving a legal demand letter — also known as a letter of demand — can cause considerable anxiety. However, it is important not to panic. Understanding what the letter means and how to respond appropriately can make a significant difference to the outcome of your matter.
What is a Demand Letter?
A demand letter is a formal written notice from one party to another, demanding that the recipient take a specific action — most commonly, to pay a sum of money or to stop a particular conduct. It is typically the first formal step before legal proceedings are commenced.
Do Not Ignore It
The most important thing to understand is that you should never ignore a demand letter. Ignoring it will not make the matter go away. In fact, it may result in legal proceedings being filed against you, which will cost significantly more time and money to resolve.
Seek Legal Advice Immediately
You should consult a lawyer as soon as possible after receiving a demand letter. A lawyer can assess the merits of the claim against you, advise you on your options, and draft an appropriate response on your behalf.
Your Options
- Comply with the demand — if the claim is valid and it is in your interest to settle
- Negotiate a settlement — your lawyer can negotiate terms more favourable to you
- Dispute the claim — if you have valid grounds to contest the demand
- Seek more time — request an extension of the deadline to take legal advice
If you have received a demand letter, contact JVA & Co at 016 606 4228 or jva@jeremyvineshanthony.com for a consultation.
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