Drafting of Demand Letter

LPO has practiced lawyers for drafting settlement demand letters. The LPO team is aware that this is the critical first step to kick starting the negotiations process and the focus is on presenting the company’s exhaustive knowledge of the industry standards.

The demand letter will clearly state the client’s grievance and a description of the justified settlement.

The name indicates a letter of demand simply demands what the party issuing it wants and claims to be entitled to. There is no law that specifies what letters of demand generally must say or contain and in many cases they have no legal status. They can however have a significant impact on the parties legal rights, and can damage a party's position if incorrectly drafted.

The first step in drafting of demand letter will be to consider whether there is any formal requirement for its contents. The most important place to look is the contract, if there is one. Many contracts specify what a demand must contain, and other matters such as where it should be sent. If the letter does not comply with the contractual requirements, it will be ineffective. If this happens, the party issuing it may not have the right to commence proceedings.

The Demand letter will include among others the following facts.

* Explanation of the scenario that led to this correspondence
* Why the other person was at fault;
* Why the insurer must pay out;
* What the settlement will cover in the way of expenses occurred etc.