DEMAND LETTER
A demand letter is a formal written communication sent by one party to demand the other party,
entity or corporation to fix a problem, pay compensation, honor a contract or perform any other
legal obligation.
They are usually sent before the sending party files a lawsuit, defining what needs to be done to
resolve an issue or dispute. They are considered mandatory documents that must be sent before
one resorts to filing a lawsuit.
Purpose of a Demand Letter
1. Pre-litigation step:
Offers the recipient an opportunity to resolve the issue, be it overdue payment,
compensation for work rendered, retraction of defamatory statements or restitution,
without resorting to a lawsuit.
2. Legal notification:
Officially informs the recipient of the claim against them.
3. Encourages resolution:
Aims to settle disputes amicably, minimizing unnecessary legal expenses.
4. Serves as evidence:
Can be presented in court to demonstrate the claimant's attempt to resolve the matter
before litigation.
5.
Scope of the Demand Letter
A) Directed at the person or entity who is the subject of the grievance or claim 1, informing
them of the issue and the need for resolution.
1 Njaga & Co. Advocates, 'Comprehensive Guide to Debt Recovery Process in Kenya' (Njaga & Co. Advocates, 2
December 2024) https://njagaadvocates.com/comprehensive-guide-to-debt-recovery-process-in-kenya/ accessed
5 March 2025.
1
B) It serves as a precursor to formal legal action, offering the recipient an opportunity to
resolve the matter without the need for a lawsuit or court intervention2.
C) The primary goal of the demand letter is to require the recipient to fulfill a specific legal
obligation, such as paying a debt, performing a contract, or ceasing certain actions.
D) The letter acts as a formal notice that legal action may be initiated if the recipient does
not resolve the issue within the given timeframe.
E) A clear deadline is specified, indicating when the recipient must take action (e.g., make a
payment or resolve the issue), providing a sense of urgency and a time frame for
compliance.
F) The demand letter may be drafted either by the person seeking redress themselves or by
their lawyer, ensuring that the legal requirements and language are appropriately
followed.
G) To ensure that the recipient receives the demand letter, it must be sent through a
verifiable method like registered mail or a legal clerk, with proof of delivery maintained
for legal purposes.
H) If the recipient does not respond or comply with the demands within the specified time,
the sender may proceed with formal legal action or other enforcement measures, such as
filing a lawsuit or initiating a claim in court.
Components of a Demand Letter
Writing a demand letter involves more than just stating your grievances and demands. Each
component of the letter has a specific purpose and contributes to the overall effectiveness of the
document.
1. Header
The header should include the sender's and recipient's contact information, the date, and a subject
line that clearly states the purpose of the letter. For example:
[Your Name]
[Your Address]
2 Legal Information Institute, 'Demand Letter' (Legal Information Institute, Cornell Law School, March 2025)
https://www.law.cornell.edu/wex/demand_letter accessed 5 March 2025.
2
[City]
[Email Address]
[Phone Number]
[Date when the Letter was written]
[Recipient's Name]
[Recipient's Address]
[City]
Subject: Demand for Payment of Unpaid Debt
2. Introduction
The introduction should briefly explain the purpose of the letter and the nature of the dispute.
This sets the stage for the rest of the letter and gives the recipient a clear understanding of what
to expect.
It also has a statement showing the lawyer’s authority to act on behalf of the client, which may
start with the words, “I have been instructed by…”
3. Statement of Facts
This section should outline the facts of the case in a clear and chronological order. Be specific
and include all relevant details, such as dates, amounts, and any previous communications
between the parties. Defamation claims should also contain the defamatory terms used and the
context they were used in.
4. Legal Basis
Here, you should cite any laws, contracts, or agreements that support your claim. This adds
weight to your demands and shows that you have a legal basis for your grievance.
5. Demand
3
Clearly state what you are demanding from the recipient. Whether it is payment of a debt,
performance of a contract, or cessation of an activity, make sure your demands are specific and
reasonable. One should set a deadline to enforce the receiving party’s compliance.
6. Consequences
Outline the consequences if your demands are not met within the stipulated deadline. This could
include filing a lawsuit, reporting the matter to regulatory authorities, or taking other legal
actions.
7. Conclusion
End the letter by summarizing your demands and providing a deadline for the recipient to
respond. A polite but firm tone is essential here.
The demand letter should also include the advocate’s name and signature.
4
Sample Demand Letter:
