Demand letter template
A free template to copy into Word or an email, how to write one step by step, and a worked example for an unpaid invoice. General information, not legal advice.
[Your Name or Firm] [Address] [Phone] • [Email] [Date] [Recipient Name] [Recipient Address] Re: [Matter, account or reference number] Dear [Recipient Name], I am writing about [what is owed or what went wrong, in one sentence: an unpaid invoice, a breach of contract, property damage]. Background [The facts, in order, with dates and amounts exactly as they appear in your records. Refer to the documents enclosed.] What I am asking for [The specific amount or action you want, and how it should be paid or done.] Deadline [The date you need a response or payment by. Only include a deadline you have decided on.] If this is not resolved by [date], I [state the next step you are prepared to take, such as filing a claim in small claims court]. I would prefer to settle this without that step. Sincerely, [Your Name] Enclosures: [invoice, contract, photos, correspondence]
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How to write a demand letter
- 1
Say what it is about in the first sentence
The reader should know from the opening line what is owed or what went wrong. Put the invoice, account or case number in the "Re:" line.
- 2
Set out the facts in order, with dates and amounts
Copy figures and dates exactly from your records, and enclose the documents they come from. A demand letter may be read later by a judge, so every fact in it should be one you can show.
- 3
Ask for one specific thing
An amount, or an action, and how it should be paid or done. A vague demand is easy to ignore.
- 4
Give a deadline you have actually decided on
Pick a date that is reasonable and that you are prepared to act on. Some kinds of claim have legal rules on how long you must wait or what the letter must say; if yours might, check the rule or ask a lawyer.
- 5
State the next step, calmly
Say what you will do if it is not resolved, such as filing in small claims court, and only what you are prepared to do. Threats you would not carry out weaken the letter.
- 6
Keep the tone firm and factual
No insults, no guesses about motives. A measured letter reads better to the recipient and to anyone who sees it later.
- 7
Keep proof that you sent it
Certified mail with return receipt, or an email you can show was delivered. Keep a copy of exactly what you sent.
Example: a demand letter for an unpaid invoice
Re: Unpaid invoice no. [number], dated [date] Dear [Name], I am writing about invoice no. [number] for $[amount], dated [date], for [the work or goods supplied]. It was due on [due date] and remains unpaid. Background On [date], we agreed to [the work] for $[amount] (agreement enclosed). The work was completed on [date]. I sent the invoice on [date] and reminders on [date] and [date], and have not received payment or any response. What I am asking for Payment of $[amount] by bank transfer to [account details] or by check to the address above. Deadline Please pay by [date]. If payment is not received by [date], I intend to file a claim in small claims court for the amount owed plus court costs. I would prefer to settle this without that step. Sincerely, [Your Name] Enclosures: agreement, invoice, reminder emails
Every date and amount comes from the records it encloses, there is one clear ask, and the next step is one the writer is prepared to take.
The mistake AI tools make with demand letters
A lawyer's note between calls, to be turned into a letter to opposing counsel:
Letter to opp counsel: no response to our 14 Mar letter - looks deliberate, a delay tactic. Strongly suggest their client reconsiders before we escalate. We will escalate if needed.
Asked to make it “clearer and more concise”, a general-purpose AI assistant returned this (run on 30 September 2026, copied exactly, without its subject line and greeting):
We have not received a response to our letter dated March 14, 2026. This silence appears to be a deliberate delay tactic. We strongly suggest your client reconsiders their position immediately. If we do not receive a response within five business days, we will escalate this matter further without additional warning.
It reads like a finished letter. It also commits the firm to three things nobody decided:
- A deadline. “Within five business days” appears from nowhere, and the other side will hold you to it.
- An ultimatum. “Strongly suggest” became “reconsiders their position immediately”.
- A promise. “We will escalate if needed” became “without additional warning”, a position the firm may not want to be held to.
It is not only tone. In Tov Realty LLC v. Suarez, an attorney checked his citations, then pasted his drafts into ChatGPT to polish them; the Connecticut court found the drafts it produced “added new case citations or altered existing case citations”, and sanctioned him (reported by Eugene Volokh). Whatever tool you use, read the final version against what you decided. What happened in that case, and a checklist.
Tidy a letter without changing what it commits you to
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Frequently asked questions
What is a demand letter?
A formal letter asking someone to pay money they owe or to put right something they did, by a set date, before you take further action such as going to court. It also creates a written record that you tried to settle first.
Do I need a lawyer to send a demand letter?
No. Many people write their own, especially for unpaid invoices and small claims. A lawyer is worth it when the amount is large, the law is complicated, or a particular legal procedure applies. This page is general information, not legal advice.
How long should I give them to respond?
Commonly 10 to 30 days, long enough to be reasonable. Some laws set a specific waiting period for certain claims, so check whether one applies to yours.
Can I use AI to write a demand letter?
To tidy the wording, yes, but read the result against what you decided. General AI tools often make a demand sound tougher than you meant: adding a deadline, an "immediately", or a promise of "no further warning". In a letter the other side can hold you to, each of those is a commitment you did not make.
Should I send it by certified mail?
It is common practice, because the return receipt proves it was delivered. Email can work too if you can show it arrived. Keep a copy either way.
Also free: an incident report template and a medical referral letter template.