A demand letter is a formal notification. It tells a service provider, merchant, insurance company, or business that an aggrieved party intends to pursue legal action and take them to court over an alleged unfair treatment or erroneous trade practice.
This letter can be written as a precursor to filing a lawsuit. It can also act as an effective document to help you resolve legal issues without undergoing litigation. Everyone knows the latter is costly, long, drawn-out, and stressful.
In many instances, companies use demand letters exactly as their name suggests. They demand that customers, partners, or suppliers pay their arrears or money due to them for services rendered. Although these letters may seem pretty straightforward because you are only demanding something, this is still considered a legal document.