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Letter of Demand


A Letter of Demand is a letter that is sent to someone when they owe you money. It is a formal way to demand that a debt be repaid and is usually sent as the final step before formal legal action is commenced.

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Frequently Asked Questions

A Letter of Demand:

  • outlines the amount owed to you, what it is for and when you want it paid
  • tells the debtor how they can pay
  • gives you alternative ways to recover the debt including offering the debtor the ability to pay by instalments, or offering payment of a lesser amount than is owing to encourage repayment (these are both entirely optional and can be deleted from the template
  • includes a warning to commence legal action if the debt is not repaid

If someone owes you money then you can send this letter to demand that the debt be repaid.

This letter is the final step you take before commencing formal legal action.

Our templates are designed to be tailored to suit your individual needs. If you purchase this letter, please make sure to read it carefully and update any of the details to suit your individual needs.

Before sending a Letter of Demand it is important that you have already approached the debtor to remind them to repay the debt. Often one or two friendly “late payment” reminder letters should be sent first. You could also try contacting the debtor via phone or email to remind them of the debt. Remember that a Letter of Demand is the final step you take before commencing legal action, so sending reminders first may help you preserve your relationship with the debtor.

A Letter of Demand will be more successful, and useful for commencing legal action if it is supported by relevant documents. So, ensure you have access to documents such as tax invoices or contracts to prove the existence of the debt before creating a Letter of Demand.

Having a good set of terms and conditions that clearly sets out your payment terms also helps to ensure that you get paid on time.

How to use this Doc:
  1. Complete the highlighted fields throughout.
  2. Consider any TIPs in the comment bubbles and make any necessary changes to the wording to suit your personal circumstances.
  3. Proofread it carefully.
  4. Consider if you need legal advice.
  5. Start using your document.
Cherrypicka is not a law firm and we do not provide legal advice. No client / solicitor relationship is formed between you and us when you purchase and use our templates. Our templates are general in nature. They may not cover every situation or law that applies to you or your specific circumstances. If you have any questions, concerns or are unsure whether the template is right for you or your business, you must see a qualified lawyer before using our templates. Our templates are not intended to be a substitute for legal advice. Our templates are based on laws current at the time of purchase and are based on Australian law. They are not suitable for use outside of Australia.
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Proof read it carefully & consider if you need 
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