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Simple English definitions for legal terms
demand letter
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A quick definition of demand letter:
A demand letter is a letter written by a lawyer for their client that explains a problem between two parties and asks the other party to do something about it. The goal is to start talking and find a solution without going to court. The letter explains what the problem is, what the client wants, and warns that if the other party doesn't respond, the client might sue. Sometimes, the law says that a demand letter must be sent before a lawsuit can be filed. Demand letters are important because they create a record of what happened and can be used as evidence later. The letter tries to convince the other party that going to court is a bad idea because it will be expensive and take a long time. To write a good demand letter, the lawyer needs to understand what the other party wants and how they think.
A more thorough explanation:
A demand letter is a written communication, usually prepared by a lawyer, that outlines a dispute between two parties and demands that the recipient take or cease a certain action. The purpose of a demand letter is to start the negotiation process that will hopefully lead to a resolution of the dispute without going to court.
The letter is usually written to influence the recipient's understanding of the risks and rewards of the dispute in a way that favors the client's interests. It typically states the harm the client has suffered, the relief they request, and may threaten legal action if the recipient does not respond accordingly.
For example, if a person is injured in a car accident and the other driver's insurance company refuses to pay for the damages, the injured person's lawyer may send a demand letter to the insurance company demanding payment. The letter may threaten legal action if the insurance company does not respond within a certain time frame.
Demand letters can be persuasive when they contain legal, practical, and emotional arguments. The letter writer must be familiar with the recipient's interests and goals and adapt the tone and content of the letter accordingly.
Some state laws require prospective plaintiffs to send a demand letter to prospective defendants before they can file a lawsuit. Demand letters also create a paper trail that can be useful as evidence if the good faith or reasonableness of a party's conduct is later called into question.