Demand Letters: What Are They?

You have a dispute with someone or with a business, for example, over an amount of money or for services? You want to resolve the problem and even go to court if you have to? You should send a demand letter, and in some cases, you must send a demand letter.

A demand letter is also sometimes called a “lawyer’s letter” or “formal notice” or, in French, a “mise en demeure.” It means you’re making a formal demand for something.

A demand letter gives you a chance to clearly and formally explain to the other person what you think he did wrong.

Important! Before you go to court, you have a duty to consider other ways to settle your dispute, such as negotiation or mediation. You can do this either before or after you send your demand letter.

Do You Always Have to Send a Demand Letter?

In most cases, no!

By law, you have to send a demand letter or written notice similar to a demand letter only in very specific cases. For example:

• When a seller of a building wants to cancel the sale, the seller sometimes has to send the buyer a demand letter. If the seller doesn’t send the letter, she cannot take back possession her building.
• When you discover a hidden defect or when you want to sue a municipality for damage to property, you have to send a notice to the person or municipality in question. This notice is only to notify them of the situation that is a problem for you. If you don’t send this notice or if you send it too late, you could lose your right to be compensated.

If you’re not sure whether you have to send a demand letter or similar notice, it’s best to send one anyway, or to consult a lawyer.

Why Send a Demand Letter When You Don’t Have to?

Here are some reasons:

• A demand letter can encourage the other person to resolve the dispute to avoid being sued. In some cases, sending a demand letter shows the seriousness of the situation. You could also use a demand letter to show that you’re willing to find other ways to settle your dispute.
• If you take legal action against someone, you have to pay court fees. Usually, you get them back if you win your case.

Automatic Notice Without Sending a Demand Letter

The law says that there are some situations in which a person is automatically “put on notice”. This means that you use the advantages of a demand letter without having to actually send one. But you still have a duty to consider resolving your dispute without going to court.

Here are examples of cases where a person is automatically put on notice of a demand (en demeure):

A contract you entered into provides that the other person will automatically be put on notice if she does not do what she promised to do on time.

Example: It has been raining very hard for two days and the roof of your new house is leaking. The ceiling, walls and your furniture could be damaged if you don’t react quickly.

Note that a person put on notice automatically might not be aware that he has been put on notice automatically. It can therefore be useful to send a demand letter to make sure the person knows about it. This could encourage him to react to avoid more serious problems.

Did You Know?

Even if the person put on notice refuses to agree to your demands, you can always change your mind and decide not to take legal action.