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This plays a significant role in resolving disputes regarding breach of contract, debt collection, property disputes, and other issues. Below are the advantages and disadvantages of sending a demand letter:
Essentially, a demand letter formally informs the recipient or the other party of the claims and demands of the letter sender, whether it is the payment of debt or loan obligations, breach of an agreement, or any other contractual obligation. Through sending the letter, the sender demands compliance from the recipient and informs the latter that in case of non-fulfillment of demands, the sender will pursue legal action to protect its rights and interests.
Sending a demand letter actually encourages amicable settlement and resolution of disputes outside courts. As a result, both parties can avoid the costs and risks associated with legal proceedings.
In some instances such as filing an ejectment case, sending a demand letter is a pre-requisite before initiating court proceedings.
Sending a demand letter does not assure compliance from the recipient. There is still a likelihood that the recipient ignores the demands of the sender or fails to respond, thereby resorting to further legal action.
Demand letters may also aggravate or increase the tension between the parties, leading to further conflict or complications.
Disclaimer: This article is for informational purposes only and should not be considered legal advice. For specific guidance on drafting and sending a demand letter, consult with a legal professional or business advisor.
Padin & Partners Law Offices is a full-service law firm based in Cebu City, Cebu, Philippines, that specializes in services related to dispute settlement. For consultations: book an appointment or reach us at +63 (32) 316-1540 or +63 917 188 0361.
Have questions? Reach out to us by filling out the form, or schedule an online or in-person consultation.
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