Guide to Writing a Letter of Demand in Singapore

What is a Letter of Demand?

Overview

A letter of demand is a (professionally) written letter listing out the demands of the sender for the recipient to comply with, and is generally reinforced with the threat of legal action should the recipient fail to comply with the demands.

Although a letter of demand can be written by anyone, most individuals and companies engage law firms in Singapore to send the Letters Of Demands.

If You Are Issuing A Letter Of Demand

Why Send A Letter Of Demand (As Opposed To Filing A Lawsuit)

Sending a letter of demand can save you a lot of legal costs if the recipient complies with your demands.

As civil litigation in Singapore is a costly and time-consuming affair, a claimant typically sends a letter of demand as a “last chance” for the other party to comply with the demands before legal proceedings are commenced.

In certain cases, letters of demands may be used in court proceedings to display your previous attempts to recover monies owed.

Why engage a Law Firm to send a Letter Of Demand

• A qualified lawyer will be better equipped to advise you on the matter
• Your lawyer will be able to check if the debt is properly recoverable by due process of the law
• Litigation checks can be done to ascertain if there are any existing/ongoing litigation against the other party
• Apart from having more clout, a Letter of Demand from a law firm in Singapore demonstrates clearly that you’re serious about the matter, and are probably willing to take legal action to resolve the matter
• Your lawyer will be able to conduct due diligence investigations on the other party

What Are The Costs Involved In Sending A Letter Of Demand In Singapore

As with everything, you get what you pay for.

Contact a trusted law firm to find out more about the costs involved when sending a letter of demand.

If You Have Received A Letter Of Demand

What To Do When You Receive The Letter

• Do not ignore it (This may result in the sender commencing legal action against you)
• Read the letter carefully, and seek clarification with the sender if you’re unclear about any of the points mentioned
• Do Not Lose The Letter Of Demand (take a photo, scan it, or photocopy it)
• Consult A Lawyer Immediately if you wish to dispute the claims OR if you’re unsure of what to do next
• If you wish to comply with the demands, consider contacting the sender to negotiate favourable terms. You may wish to consult a lawyer to assist with this by conducting negotiations on a “without prejudice” basis (this loosely means that the sender of the letter may not use contents of the negotiations as evidence in court later on against you)

Contents Of A Letter Of Demand (What are all those legal terms?)

Generally, when you receive a letter of demand, these are some of the terms, phrases, and demands you’ll notice:

• All our client’s rights are expressly reserved: This generally refers to the sender’s right to commence legal action (in most cases)
• Without prejudice: “Without prejudice” means that, if you go to court later regarding the dispute referred to in the letter, you can’t produce the letter in court to use it against the sender
• The claimant’s identity and the law firm’s identity
• Any payments, actions, or relief that the claimant is seeking
• A summary of the facts surrounding the matter
• Measures that will be taken by the claimant should you fail to comply with the demands in the letter

Conclusion

Sending A Letter Of Demand

Before seeking legal advice and/or sending a letter of demand, we encourage you to consider the following:

• What the most favourable outcome to you in the matter? (What would you like to achieve)
• Do you have a strong claim (that you can prove in court)?
• Have you tried all reasonable measures to resolve the matter?

If after considering all the above mentioned, you still feel that you would like to send a letter of demand to another party for the purpose of recovering monies owed to you, or make demands to a certain party to do (or cease to do) something, or we strongly advise you to seek solid legal advice.

When a party sends a Letter Of Demand, it is normally an indication the other party that the sender is about to commence legal proceedings.

Receiving A Letter Of Demand

Upon receiving a Letter Of Demand, here are some considerations:

• Do you understand the claims that the sender is demanding?
• What are your chances in court should you choose to contest the claims?
• Can you negotiate terms of a settlement with the sender and avoid civil litigation?

If you’re unsure of your rights, or implications of your next actions, we strongly advise you to contact a Civil Litigation Lawyer who will be able to provide you with solid legal advice based on the merits of your case.