How to Write a Demand Letter for Breach of Contract (with Template)

Key Takeaways

  • Definition: A demand letter for breach of contract is a formal document sent to request remediation from a party who has failed to fulfill their contractual obligations.
  • Purpose: Its main goal is to resolve the dispute without legal proceedings.
  • Components: Key components include identification of the breach, a summary of damages, a clear demand, a deadline, and a statement of intent to pursue legal action if necessary.
  • Tone: It should be professional and factual.
  • Legality: The letter can be used as evidence in court, so ensure accuracy and completeness.
  • Response Time: Typically, a 15-30 day period is given for a response.
  • Template Included: A customizable template is provided at the end of the article.

Introduction

When faced with a breach of contract, writing a demand letter is often the first step in seeking resolution. This document outlines the issue, requests a specific remedy, and serves as a legal foundation if further action is required. 





A well-crafted letter can effectively communicate your position and expedite the resolution process, potentially avoiding costly litigation.

A professional office setting with a person sitting at a desk, writing a demand letter for a breach of contract

Step-by-Step Guide to Writing a Demand Letter

Step 1: Gather Documentation

  • Review the Contract: Identify the specific terms that have been breached.
  • Collect Evidence: Gather any relevant documents, emails, or other evidence supporting your claim.

Step 2: Outline the Breach

  • Identify the Breaching Party: Clearly state who breached the contract.
  • Detail the Breach: Explain how the contract was breached, referencing specific clauses.

Step 3: Calculate Damages

  • List Damages: Quantify the damages or losses incurred due to the breach.
  • Include Supporting Evidence: Attach invoices, receipts, or estimates to substantiate your claim.

Step 4: Draft the Letter

  • Introduction: Begin with a clear introduction, stating the purpose of the letter.
  • Body: Detail the breach, include evidence, and list the damages.
  • Demand: Specify what you want (e.g., compensation, performance of the contract).
  • Deadline: Set a reasonable deadline for the response.
  • Consequences: State your intent to pursue legal action if the issue is not resolved.
  • Closing: End politely and professionally.

Step 5: Review and Send

  • Proofread: Check for errors and ensure clarity.
  • Send via Certified Mail: Provides proof of delivery.

Example Scenario

Imagine a caterer failing to show up for a large event, violating their contract. The event organizer can write a demand letter outlining the breach (no-show), detailing incurred costs (alternative catering), and demanding compensation.

Tables and Lists

Checklist for Demand Letter

  • Review Contract
  • Identify Breach
  • Calculate Damages
  • Draft Letter
  • Proofread
  • Send via Certified Mail

Table: Components of a Demand Letter

ComponentDescription
IdentificationParties involved and contract reference
DescriptionDetails of the breach
DamagesList and evidence of incurred damages
DemandSpecific remedy requested
DeadlineTime frame for response
Legal ActionStatement of intent to pursue legally

Conclusion

A demand letter for breach of contract is a powerful tool for resolving disputes amicably. It provides a clear, legally sound basis for your claims and sets the stage for further action if necessary. Follow the steps and utilize the provided template to create an effective letter.

Demand Letter for Breach of Contract Template

[Your Name]
[Your Address]
[City, State, Zip Code]
[Email Address]
[Phone Number]
[Date]

[Recipient’s Name]
[Recipient’s Address]
[City, State, Zip Code]

Subject: Demand for Remediation – Breach of Contract

Dear [Recipient’s Name],

I am writing this letter in reference to the contract dated [Contract Date] between [Your Name/Your Company’s Name] and [Recipient’s Name/Recipient’s Company’s Name], regarding [Brief Description of Contract, e.g., ‘the supply of construction materials’]. 

It is with regret that I must inform you of your breach of this contract, specifically pertaining to [Specify the Breach, e.g., ‘failure to deliver the materials as agreed upon’].

As per the terms of our contract, [Describe the Obligation, e.g., ‘you were to supply X materials by Y date’]. However, [Describe the Breach, e.g., ‘as of today’s date, these materials have not been delivered, resulting in significant delays in our project timeline’]. 

This failure to comply with the contractual terms has resulted in [Describe Damages, e.g., ‘additional costs, loss of revenue, and other associated damages’].

Please find attached [List Attached Documents, if any, e.g., ‘copies of the contract, correspondence regarding the delivery schedule, and records of incurred additional costs’] that substantiate the breach and the resultant damages.

In light of the above, I hereby demand [Specify Your Demand, e.g., ‘immediate delivery of the pending materials along with compensation for the additional costs incurred, totaling $X’]. I expect a response to this letter and a resolution to the situation by [Set a Deadline, e.g., ’30 days from the date of this letter’].

Please understand that this letter serves as a formal demand for immediate remediation of the breach. Failure to address this matter within the specified timeframe will leave me with no choice but to pursue further legal action to seek remedy for the breach of contract.

I hope we can resolve this matter amicably and promptly. Please contact me directly at [Your Phone Number] or [Your Email Address] to discuss this matter further.

Thank you for your immediate attention to this issue.

Sincerely,

[Your Signature (if sending a hard copy)]
[Your Printed Name]


Attachments:

  1. Copy of the Contract
  2. [Any Other Relevant Documents]

Note: This template is a general guide and should be tailored to the specifics of your situation. It is also advisable to seek legal advice in complex cases to ensure compliance with applicable laws and regulations.


Tips for Writing an Effective Demand Letter

  1. Be Concise: Keep your letter focused and to the point.
  2. Stay Professional: Maintain a formal tone throughout.
  3. Fact-Check: Ensure all information is accurate and verifiable.
  4. Customize: Tailor the template to your specific situation.
  5. Legal Advice: Consider consulting a lawyer for complex cases.