About This Template
You may find your expectations in a business relationship with another party have not been met. Perhaps you have not been paid for work that you have completed, or someone is using your work in a way you did not agree it could be used. You may be able to resolve these contract disputes through informal communications, like a phone call or in an email exchange, but there may also be times when those informal communications do not resolve the problem. In such cases, you may decide to send a formal demand letter, such as a version of the template demand letter presented here.
Most contract disputes in Canada resolve before they reach the stage of filing a lawsuit with a court, so a demand letter, whether prepared by you or a legal professional on your behalf, can be one of the strongest tools in your legal toolbox when it comes to resolving issues with other parties.
What is a Demand Letter?
A demand letter is a formal written communication to an opposing party under a contract with you where you:
- Identify your problem or dispute (for example, that you have not been paid the full amount you have agreed to for your completed work),
- State your proposed solution and what you expect the recipient of the letter to do (for example, that they should pay you the agreed upon amount due for your work under the contract), and
- Give the recipient a deadline to comply.
Do not use this demand letter format if you are writing to anyone with whom you do not have a contract or business relationship. For example, if a member of the general public infringes the copyright you own in a work and you want to demand that they stop, you will need to refer to a template for a “cease and desist” letter rather than a demand letter, because there is no contract or business relationship with that person.
Why Should You Send a Demand Letter?
A demand letter can signal to the recipient that you are taking the matter more seriously and are prepared to escalate the matter by taking the dispute to court if necessary. While some people prefer that a demand letter be sent by a legal professional on their behalf as an additional signal of this serious intention, there is no legal requirement that such professional send these kinds of letters. It is important to seek professional legal advice when you need it, but it is also important to make effective use of such advisors at a cost proportionate to the value of your claim.
Template Document
The demand letter template below can be used as an informational reference, whether you choose to prepare your own demand letter or you just need to be more effective in briefing a lawyer or paralegal to prepare or send a demand letter on your behalf. This template has been written assuming there is a written agreement in place, and the demand is for an overdue payment under that agreement. The circumstances of each case will vary, so you or your legal advisor should always tailor such a document to suit your circumstances and needs.
Legal Information is Not Legal Advice
This document is provided for general information and reference purposes only and does not constitute legal advice. It is not intended to be a substitute for specific professional legal advice and should not be relied upon as such. ALAS and all contributors to this document disclaim any responsibility or liability for its accuracy, completeness, or currency, or for any action taken or not taken in reliance on it.
