Letter of Demand

A letter of demand is also known as a letter before action or abbreviated to LBA

A letter of demand is sent from one party to another when the first party wishes to claim money they believe is owing to them. The letter states the amount that is outstanding, a timeframe for action and advises that proceedings (litigation) may be commenced without further notice if the debt is not paid. Equally, a letter of demand might be sent in the first instance to make a demand for restitution or performance of some obligation, owing to the recipients' alleged breach of contract, or for a legal wrong.

The absence of sending a letter of demand prior to the commencement of legal proceedings may well have a negative impact on expenses.

A letter of demand letter may well prompt a denial letter stating the basis for rejecting a claim, and is sometimes a good indication of what the defences will be and indeed may well be able to be founded upon at a later date.

The content of this website is for general information only and should not be relied upon. It is not intended to be construed as legal advice and should not be treated as a substitute for specific advice.