a formal notice demanding that the addressee perform a legal obligation, such as rectifying a problem, paying a sum of money or honouring a contractual commitment, on specific terms and within a specified time
Also known as a Breach Letter or Notice of Intent to Foreclose. Notice to the borrower that he/she is in "breach" of the terms of the Note and advising of the right to "cure" the default.
A letter expressly stating a legal right and an amount due as reasonable compensation for injuries to person and/or property.
A letter by an attorney addressed to a defendant or debtor advising of the attorney's representation of the plaintiff or creditor and requesting payment or performance of some obligation.
A letter usually from a lawyer on behalf of a client that makes a demand for payment or some other action which is in default. Under the Bankruptcy Act, a financial institution before it takes any action must give demand and notice of intention if it intends to enforce its security and must wait 10 days before it can enforce its security by, say, the appointment of a Receiver or Agent.
A notice issued to a borrower, warning of the imminent danger of foreclosure.
Correspondence sent to the borrower indicating that unless the loan is made current within a certain time frame, the lender can, by virtue of a default, declare the entire principal balance outstanding, as well as all interest due under the note, to be due and payable.
A written request to pay. A demand letter will state the amount owing and will generally provide a short deadline for payment before action is commenced. While demand letters are no longer a formal necessity, there are very few cases where one should not be sent before commencing an action.
A letter from a lawyer, on behalf of a client, that demands payment or some other action, which is in default. A demand letter sets out why the payment or action is claimed, how it should be carried out (e.g. payment in full), instructions for replying, and a deadline for the reply. Demand letters are not always prerequisites for a legal suit but there are exceptions, such as legal action on promissory notes or if the contract requires it. They are often used in business contexts as a courtesy attempt to maintain some goodwill between business parties. They often prompt payment, avoiding expensive litigation since a demand letter often contains the "threat" that if it is not responded to, the next communication between the parties will be through a court of law in the form of formal legal action.
Letter sent by the attorney's office when a claim is received. It notifies the debtor that the client has hired an attorney to collect the debt.
A letter from a lawyer, on behalf of a client, that demands payment or some other action, which is in default. Demand letters are not always prerequisites for a legal suit but there are exceptions such as legal action on promissory notes or if the contract requires it. Basically, a demand letter sets out why the payment or action is claimed, how it should be carried out (eg. payment in full), directions for the reply and a deadline for the reply. Demand letters are often used in business contexts because they are a courtesy attempt to maintain some goodwill between business parties and they often prompt payment, avoiding expensive litigation. A demand letter often contains the "threat" that if it is not adhered to, the next communication between the parties will be through a court of law in the form of formal legal action.
