Legal Definitions - cross-demand

A cross-demand refers to a claim or request made by one party against another party, where the second party has already initiated a claim or request against the first. It is essentially a counter-request or a reciprocal claim, often arising from the same transaction or relationship.

Here are some examples to illustrate this concept:

• Example 1: Contractual Dispute over Services

  Imagine a web design firm sends an invoice to a client, demanding payment for the development of a new website. The client, however, believes the website was delivered late, contains numerous bugs, and does not meet the specifications outlined in their contract. In response to the firm's demand for payment, the client issues their own demand for a partial refund and compensation for the delays and faulty work.

  Explanation: The client's request for a refund and compensation is a cross-demand because it directly counters the web design firm's original demand for payment, both arising from the same contractual agreement and dispute.

• Example 2: Goods and Product Quality

  A furniture manufacturer ships a large order of office chairs to a retail store and subsequently demands full payment. Upon receiving and inspecting the shipment, the retail store discovers that many of the chairs are damaged or have manufacturing defects, making them unsellable. The retail store then responds to the manufacturer's demand for payment by making a cross-demand for a credit, replacement chairs, or a reduction in the overall invoice amount.

  Explanation: The retail store's claim for credit or replacement goods is a cross-demand because it is made in direct response to the manufacturer's initial demand for payment, both stemming from the same sales transaction.

• Example 3: Property and Neighbor Disputes

  A homeowner sends a formal letter to their neighbor, demanding that they trim a large tree whose branches are significantly overhanging the homeowner's property and dropping excessive debris. The neighbor, in turn, believes the homeowner has been consistently parking their vehicle partially on the neighbor's driveway, blocking access. The neighbor responds to the demand about the tree by issuing a cross-demand for the homeowner to cease parking on their property and to pay for any damage caused to the driveway.

  Explanation: The neighbor's request for the homeowner to stop parking on their property and pay for damages constitutes a cross-demand because it is a reciprocal claim made in response to the initial demand regarding the overhanging tree, both related to the shared property boundary and neighborly conduct.