Demand Letter
The reduction, elimination, or suspension of a legal proceeding, charge, or financial obligation.
What is Demand Letter?
A Demand Letter is a written notice that formally requests payment or action, explains the legal basis for the claim, and warns that a lawsuit may follow if the issue isn’t resolved.
Why It Matters?
It preserves claims, supports settlement negotiations, documents damages, and often serves as a prerequisite before filing suit.
Example
After a rear-end accident, an attorney sends the insurer a demand letter detailing medical bills, lost wages, and a settlement amount to resolve the injury claim without litigation.
Related Terms
Mediation
Litigation