How to Handle Demand Letters for Breach of Contract

A breach of a contract demand letter is a letter sent to an individual or party who has failed to perform as agreed upon in a contract. The letter should identify the violating party, the Date of the Agreement, and the specific actions taken by the violating party. 

The breach of contract demand letter seeks one of two goals: 1.) to demand that the violating party “cure” the issue for it to comply with the Agreement, or 2.) to claim that the Contract has been terminated and seek damages. In either case, the violating party must reply to the demand letter by a specific date before initiating court action or legal action.

There are specific ways to handle demand letters for breach of Contract. However, make sure to keep these things in your mind when handling bread of contract demand letters: 

  1. Collect all pertinent documents: You should gather and organize any contracts or documentation related to your Agreement. Examine all of these documents and use the information to create a timeline that describes the sequence of events and the alleged contracting breaches that occurred along the way. Emails should be saved as they are required to be a part of your Contract with the other party. 
  2. Choose a legal strategy based on the worth of your case: After you’ve gathered your documents and considered your opponent’s point of view, consult with a lawyer about your case. An accomplished attorney can offer invaluable advice and provide a realistic assessment of the strength of your case. 

You need to note that there are various types of Breach of Contract. Some common types are: 

  • A minor breach of Contract
  • Actual breach 
  • A material breach of Contract
  • Anticipatory breach of Contract
  • Breach of Non-Compete Covenant Law Elements & Defenses

Furthermore, here are some samples of demand letters for breach of Contract: 

Sample 1

[Date]

[Name]

[Address]

RE: Demand Letter / Contract Breach

To [Name]:

[Your Company Name] has fulfilled all of its obligations under the Agreement dated: [enter execution date] by [describe how the duties were fulfilled]. Despite this and repeated requests, [Addressee Company Name] has not paid $[outstanding amount] and thus violates the Agreement. While we intend to file a lawsuit against [Addressee Company Name] to assert these claims, we hope to reach an agreement outside public court.

The information contained in this letter is strictly confidential and intends to be only for settlement purposes.

We would appreciate a timely response to this letter by the end of business on [Date]. If we have not heard from [Recipient Company Name] by this time, we have the right to take any legal action, including formal litigation.

Yours sincerely,

XYZ Corporation

Signature

[Company name] [Name]

Sample 2

Contract Breach Notification

[Date]

[Name of Recipient]

[Address of the Recipient]

Concerning the Notice of Contract Breach

Dear [Name of Recipient],

This correspondence relates to the [Full Name of breached Contract] executed on [Date] by [Name of parties who ran Contract] (the “Contract”).

Sections [Relevant sections of the Contract] of the Contract state, as you are aware, that:

[Term that is violated]

[Term that is violated]

[Term that is infringed]

As a result, [Breaching party name] owed [Duty that was breached] by [Date]. This did not happen. As a result, the purpose of this interaction is to provide written notice of default per Contract Section [Applicable section]. According to Section [Applicable section] of the Contract, if the [Breaching party name] fails to fix such a default within [Period] days of this interaction, the [Non-breaching party] is entitled to [Details of which are necessary during the breach of the Contract].

Sincerely,

Signature

[Company Name] [Your Name]

Conclusion

To conclude, successful business dispute solutions typically necessitate overcoming feelings of disappointment, anguish, or deceit, which frequently accompany breach of Contract. It would be best if you tried to concentrate on practical and cost-effective solutions.

With the documentation you collect and the advice of an attorney, you will be well-informed and ready to choose your legal course of action. You’ll also have a more objective view of the situation and sufficient “cooling off” time to make sound decisions.

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