Demand Letters: Pay Attention to the Details
Inevitably, from time-to-time it becomes necessary to send a letter “demanding” that some third-party take action by a specified date or else face additional consequences. In a typical situation, most demand letters are for payment of money and/or demanding a default be cured.
With any demand letter, it is important to first perform a thorough review of the underlying contract documents. Often, the parties’ underlying agreement will contain provisions pertaining to notice, default, and the like. For example, the underlying contract might provide that any notice must be sent to a particular address, or sent via certified mail, in order to be effective. Many agreements also contain provisions as to when the notice is deemed “effective.” The underlying agreement might also specify that a specified notice and opportunity to cure period is required prior to there being an event of default. In other words, it is possible the other party is entitled to a 10-day cure period after written notice before he or she can be declared in default for failing to pay. Each contract is different, but it is important to follow the parties’ agreement—after all, it is the parties’ agreement.
Demand letters should also be careful to include any legally mandated notice provisions and/or observe any legally mandated timelines. There are a myriad of laws which may or may not apply given the factual circumstances. For example, persons meeting the definition of a “debt collector” under the Fair Debt Collection Practices Act must give certain notices in certain situations and otherwise comply with that Act. Likewise, in an eviction proceeding, certain notice is often required prior to initiation of an eviction action. Whatever the situation, it is important to always comply with all laws and ordinances.