Demand letter: What does it mean?

The demand letter is just a simple letter. It has no legal effect except to have warned the opposing party of what you are requesting and is usually required before taking legal action. It allows the opposing party to react to your request, but does not give you any other rights.

So, you just sent your demand letter? This is an important step you have taken in order to resolve your dispute with the opposing party. Has the granted deadline expired or has expired? The person put on demand letter can react in several ways. Here are the four potential effects you can expect from sending a demand letter.

This is the best scenario. The opposing party accepts your request and agrees that the fault you hold against him is correct and that the damages suffered are just. This scenario is possible but highly unlikely. Generally, in a demand letter, you will ask for an amount that will put you in a situation as comfortable as you were initially. Expect the other side to want to negotiate the amount claimed, if only a little. The recipient may have a different version than yours, so the recipient will likely try to reduce their obligation.

This is the most likely scenario. The demand letter serves as an effective trigger to signal the seriousness of its approach and at the same time encourage the opposing party to negotiate in order to avoid a long and costly dispute. The applicant, before sending your demand letter, should preferably determine a minimum threshold below which any amount granted would make him dissatisfied with the damage suffered. He will demand the full amount on the notice and will be happy to receive an amount that falls in between.

The opposing party, if the allegations are well founded, will seek to pay as little as possible and will usually make a first counter-offer much lower than what is required and probably below the minimum threshold you have established (without communicating it of course to them). ). The negotiation is then initiated and it will end, hopefully, somewhere in between. A very interesting tool for making offers and counter-offers on the web is the Legalhood.com site: it offers a communication channel open at all times, there is no direct confrontation between the parties and that is a lot. cheaper.

Remember that the law requires that you try to resolve your dispute through various alternative and / or technological means before going to court. For this reason, it is interesting to invite the other party to negotiate as soon as the demand letter is given. In addition, the legal process can be very long and expensive, in addition to being stressful and exhausting. For these reasons, pouring water into your wine and accepting less compensation can still prove to be a winner. Trying to establish a value for these hidden costs also serves to establish its minimum threshold. Keep in mind that a 2-3 day trial can cost on average over $ 20,000.

In this case, it is not the amount claimed that is the source of the conflict, but the fault itself. The opposing party may disagree with you completely and not acknowledge the facts with which you are accusing them. In this situation, negotiation is unnecessary. If you haven’t already done so, it may be best at this stage to consult a lawyer to verify the legal merits of your action. If your request is well founded and is supported by good evidence, then it will be necessary to appeal to the courts since the other party refuses any form of agreement.

A fourth possibility may arise following the sending of a demand letter. The defending party may simply not respond at all. In this case, make sure you sent it to the correct contact details. Do not forget to send it either by registered mail or by bailiff. If you are certain that it has reached the recipient and the recipient still has not responded after the deadline granted, you can appeal to the courts or send a second follow-up letter, specifying this time that in the event that the recipient ignores it again, you would have to go to court.