Before we go into the nitty-gritty of writing a demand letter, it necessary to state its importance in cases of settling disputes arising from payment.

In cases where dialogue fails, one may decide not to mediate on resolution, then a demand letter is necessary. It is a commonplace for courts to require the plaintiff to write a demand letter for payment. And if they do not require this, it is sensible to do such. For the first reason, in one-third of all disputes, the demand letter serves as a speed-up to settlement. And also, if the parties do not reach a settlement, then the creditor must file his or her case in an organized way before the judge and his court. Better still, with a demand letter, one has an evidence permissible in court if the situation escalates.

Oftentimes, individuals do not want to make small claims case because they think it is a minor issue. Rather, they prefer to write the other party a clear, concise letter demanding payment. From there, the letter itself or conversations it engenders, enables them to receive all, or at least a significant part of their demand.

How do you write a formal demand letter? Here are a few steps to writing an effective one.

Composing Your Demand Letter

The key points to note in writing a demand letter are as follows:

• It is necessary to type the letter: It is a formal document and meant for formal purpose, then it must be presentable in an acceptable format.
• You need a concise review of the main facts of the dispute: The court demands an organized presentation of issues, events and the likes for documentation. So, it is the duty of the creditor or plaintiff, whichever is applicable, to have a stated record of what had transpired between the parties involved in the dispute. He/she must record how many times his calls to the defendant were not answered and the number of times he promised and failed to fulfil it. It is very necessary because an organized written presentation will appeal more to the court than the haphazard and disjointed claims.
• Be Polite: It is responsible of the claimant to try not to verbally assault his offender, if he or she deserves it. This could escalate the issue and jeopardize one’s chances of having a fair hearing.
• Write with your goal in mind. The letter should encourage your opponent to make a business-like analysis of the dispute and raise such questions as:

What are my risks of losing?

How much time will a defence take? Do I want the dispute to be decided in public?

It is needful one states that the pursuit of a legal redress is an option if the demands are not met. The offender should be reminded of the implication of an adverse judgement could have on his or her credit rating.

• Make and keep copies. In order to have a good case, there is need to compile a detailed record of copies of correspondence earlier sent or received.
• Use certified mail. Ensure the demand letter is sent via certified mail with a proof of return receipt. So if anything falls apart, the need to go to court arises, then this can be used to oppose any frivolous claims of non-receipt.

Related Reading: Common Errors to Avoid in Formal Writing