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A demand letter is a formal legal notice that demands performance of a specific obligation from its recipient within a stated time frame. Obligations may include rectifying some identified problem, paying a sum of money or acting on a contractual commitment. A demand letter gives the recipient a chance to perform their obligation without being taken to court.

With BidSettle, you can create and send your own demand letters without hiring a costly attorney.

A demand letter must include the following information:

  • the date;
  • the recipient’s contact information;
  • the legal phrase “Without Prejudice” to protect the sender in case of a future litigation;
  • the term “demand letter” clearly stated in the letter’s subject to avoid any ambiguity for the recipient;
  • a summary of the dispute or matter;
  • a demand;
  • a deadline by which the recipient must act;
  • the sender’s contact information and signature.


Anyone can create a their own demand letter. You don’t need to be a lawyer to do it!

However, demand letters generally follow a specific format. If you are unsure about how to structure your letter, use BidSettle’s smart-form software to guaranty a strong letter with all the required elements. Better still, rest assured that BidSettle’s will automatically send your demand letter and provide you with the necessary proof of delivery.


For many legal proceedings, a demand letter is mandatory. If you forget to send it, you could lose your case in court. Therefore, it is always a good idea to send one prior to instituting legal proceedings. Additionally, in many instances, it actually encourages the recipient to settle the dispute out of court and saves legal fees.

It is important to note that sending a demand letter does not require the sender to actually sue or take up other legal action against the recipient. If the recipient does not respond after delivery of the demand letter, or refuses to perform the legal obligations set forth in the letter, the decision on taking the matter to court rests with the sender.


  • It is important not to offer unnecessary information that that could be used against your claim later on. Simply stick to the facts.
  • Being polite can pay off. In many situations, emotions can prevent disputes from being settled. Remaining emotionally neutral will improve your odds of settling your dispute.
  • The sender must make a few copies of the demand letter and keep one for their file. The original must be sent to the recipient, preferably by registered mail, as this method will provide you with the confirmation of delivery. This is crucial as the sender must be able to prove that the document was sent and received. The sender must therefore keep a copy of the confirmation of delivery provided by Canada Post to be able to prove that the demand letter was delivered to the intended recipient. (A judge could ask for this evidence in court.)
  • The legal expression “Without Prejudice” is normally included in order to protect the sender with regard to the contents of the letter (for instance, in case the sender would have to change the amount owed).


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