Demand Letters 101: What They Are, What They Do, and Your Options

Getting or sending a demand letter can feel like the start of a battle, but it’s often the first step toward a solution. Whether you’re on the sending or receiving end, understanding what a demand letter does (and doesn’t do) can help you protect your interests and make smart decisions.

At Brinkley Law, we believe informed clients make better choices. Here’s an overview of demand letters and what comes next.

What Exactly Is a Demand Letter?

A demand letter is a formal written request that outlines a dispute, explains what the sender believes they’re owed, and gives the other side a chance to resolve the issue before litigation.

It can demand payment, property, performance of a contract, or even that certain conduct stop (such as a cease-and-desist). While it’s not a lawsuit, it’s a clear signal that legal rights are being asserted and time is running short.

Why They Matter

Demand letters serve several key purposes:

1. Clarity: They spell out the facts, claims, and desired outcome.

2. Documentation: They create a written record that may later support your case.

3. Negotiation: They open the door to settlement discussions before expensive litigation.

4. Notice: In some cases, courts or statutes require notice before filing suit.

A well-crafted letter shows the other side that you’re serious and that you understand the process.

What a Strong Demand Letter Includes

• Names and dates of relevant people, events, and contracts

• A concise summary of the facts and the legal or contractual basis of the claim

• The specific demand (e.g., dollar amount or action requested)

• A deadline for response

• Supporting exhibits or references to evidence

Tone matters. A letter that is clear, professional, and factual is far more persuasive than one that is emotional or threatening.

If You Receive a Demand Letter

Don’t panic and don’t ignore it. Take these steps:

1. Read carefully. Identify who sent it and what they’re asking for.

2. Preserve evidence. Save emails, contracts, receipts, or messages.

3. Avoid direct confrontation. Anything you say could be used later.

4. Contact an attorney quickly. A lawyer can evaluate the letter, spot deadlines, and advise on response options.

You may be able to negotiate, settle, or dispute the claim before it ever reaches court.

If You Need to Send a Demand Letter

An attorney-drafted demand letter carries far more weight than one written by an individual. It signals credibility, accuracy, and readiness to act. A lawyer can ensure the letter meets legal notice requirements and positions you for the best possible outcome, whether that’s settlement or litigation.

Ready to take the next step?

Schedule a call with Brinkley Law today at 317-766-1379. We’ll review your situation, discuss your options, and help you decide whether sending or responding to a demand letter makes sense for your case.