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What Is A Letter Of Demand
What is a Letter of demand?
A Letter of demand is an official missive hat is generally sent to an individual or a company by another company or an individual through legal channels. The receiver of the document would be an individual or an organization who owes money to the sender. The document, as is clear from its name demands from the debtor the outstanding or the balance amount to be paid by the date stipulated in the letter. The document contains information about the consequences of failing to do so. It is basically issued for debt recovery through an official or a legal channel.
There are two essential purposes of the document. Firstly it acts as a warning tool to the debtor by reminding the concerned individual or the organization of the debt and letting the debtor know that in case of failure of payment legal action will be taken. This also ensures that the debtor is provided with one or more opportunities to make the payments. Secondly, this legal missive proves as important evidence that can be produced in the court of law to prove that such a demand was made to the debtor and sufficient leeway was provided.
This letter also proves that the debtor owes some debt and all that the creditor did through the letter was to ask for the payment. Whenever a Letter of demand is sent to the debtor, be it an individual or an organization, copies of pertinent documents should be annexed. Information on the agreement letter, contracts, invoices, etc should be attached so that the debtor can recognize the transactions made and the outstanding balance that the individual or the organization has to pay. The legal document should always be sent through fax or post so that a receipt of such a post can act as evidence to the fact that such a letter had been sent and consequently can be produced in the court. It is advisable to send just one demand letter else this might lead to the arousal of false impression. The demand letter should not contain words that would harass the debtor or words that are acerbic.
The debtor has the right to complain about harsh demand letters to the police or even the concerned government agency and this may prove to be a negative effect on the creditor. The Letter of demand should look like an ordinary letter and not like the one issued from the court, because that would be considered illegal. Before sending the letter the creditor should have a thorough knowledge of the transaction between the creditor and the debtor and also the about the amount involved. The creditor should go through all the relevant information before drafting the letter. It is very important that the letter is framed in a polite language. Since it is not necessary that the debtor has to be sued and hence the letter need not be or rather should not be harsh. The creditor must try his or her best to avoid legal proceedings and settle the dispute without taking the issue to the court.
A Letter of demand is an official missive hat is generally sent to an individual or a company by another company or an individual through legal channels. The receiver of the document would be an individual or an organization who owes money to the sender. The document, as is clear from its name demands from the debtor the outstanding or the balance amount to be paid by the date stipulated in the letter. The document contains information about the consequences of failing to do so. It is basically issued for debt recovery through an official or a legal channel.
There are two essential purposes of the document. Firstly it acts as a warning tool to the debtor by reminding the concerned individual or the organization of the debt and letting the debtor know that in case of failure of payment legal action will be taken. This also ensures that the debtor is provided with one or more opportunities to make the payments. Secondly, this legal missive proves as important evidence that can be produced in the court of law to prove that such a demand was made to the debtor and sufficient leeway was provided.
This letter also proves that the debtor owes some debt and all that the creditor did through the letter was to ask for the payment. Whenever a Letter of demand is sent to the debtor, be it an individual or an organization, copies of pertinent documents should be annexed. Information on the agreement letter, contracts, invoices, etc should be attached so that the debtor can recognize the transactions made and the outstanding balance that the individual or the organization has to pay. The legal document should always be sent through fax or post so that a receipt of such a post can act as evidence to the fact that such a letter had been sent and consequently can be produced in the court. It is advisable to send just one demand letter else this might lead to the arousal of false impression. The demand letter should not contain words that would harass the debtor or words that are acerbic.
The debtor has the right to complain about harsh demand letters to the police or even the concerned government agency and this may prove to be a negative effect on the creditor. The Letter of demand should look like an ordinary letter and not like the one issued from the court, because that would be considered illegal. Before sending the letter the creditor should have a thorough knowledge of the transaction between the creditor and the debtor and also the about the amount involved. The creditor should go through all the relevant information before drafting the letter. It is very important that the letter is framed in a polite language. Since it is not necessary that the debtor has to be sued and hence the letter need not be or rather should not be harsh. The creditor must try his or her best to avoid legal proceedings and settle the dispute without taking the issue to the court.
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