What is a breach of contract?
What is a demand letter or a letter demanding payment?
Common Types of Breach of Contract Demand Letters
-
You let someone borrow money and were not repaid as expected.
-
You paid for a product, but it does not work, or it was never received.
-
You sold a product but did not get paid.
-
You completed a service or did work but did not get paid.
-
You paid for a service, but it was not completed.
-
The other party did not pay housing rent payments in full.
-
The property owner did not return the security deposit as expected.
How to Write a Breach of Contract Demand Letter
-
Details of the breach – including specific dates and details of how the breaching party failed to fulfill their obligations.
-
Amounts owed – include any costs that have been incurred because of the breach such as lawyer’s fees or other expenses.
How to Send the Demand Letter
-
If it is sent by mail, you will need to provide proof of delivery and have your signature notarized.
-
If served in person, a witness should be present to verify that the letter was delivered properly.
FAQ
Is a Demand Letter Serious?
A demand letter shows that an individual or entity is serious about resolving a particular issue or dispute. They are likely preparing themselves for legal action if the demand letter is ignored.
What Responses Can There Be to a Breach of Contract Demand Letter?
-
They may acknowledge the breach and agree to take corrective action.
-
They may accept responsibility for the breach and pay you as requested.
-
They might offer a settlement or payment plan as an alternative solution. In some cases, negotiation may be necessary to reach an agreement.
-
They may contest the demand letter, claiming the breach occurred differently than what you described.
-
They may contest the demand letter, claiming that no breach has occurred.
-
They may not respond.
When is Legal Action Necessary?
Legal action may be necessary if the breaching party fails to respond or rejects the demands outlined in the demand letter. If you have suffered significant financial damage, it may be worth considering taking the other party to small claims court where you can represent yourself without a lawyer. To help weigh the pros and cons of suing someone in your situation, check out JusticeDirect.com.
What is the Statute of Limitations on Breach of Contract Claims?
The statute of limitations on breach of contract claims varies by state but is generally two to four years (depending on whether the agreement was made verbally or written down). It is important to note that the statute begins when the breach occurs, not when you become aware of it. To ensure all legal recourse remains available, it is best to act promptly once a breach has been discovered. For more information, you can refer to Suing within the Statute of Limitation.
When Should You Consider Hiring an Attorney?
-
The case involves complex issues
-
The case involves large sums of money, that exceeds the limit for Small Claims for the corresponding area/state.
-
You’d like your case presentation is to be reviewed by a professional before going to court. You can often pay for this service alone and nothing else.
Is a Breach of Contract a Tort?
NEED HELP WITH YOUR JUSTICE JOURNEY?
-
Understand the legal process;
-
Evaluate the pros and cons that come with taking someone to court;
-
Generate small claims court forms; and,
-
Avoid common mistakes when filing your forms and serving notice on the other side.