Breach of Contract Demand Letter

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Updated May 28, 2022

A breach of contract demand letter is a notice to an individual or party that has failed to perform as specified under a previously agreed upon contract. The letter should identify the party that breached the agreement, date of the contract, and the specific actions conducted by the violating party. The demand letter seeks either of the objectives: 1.) to request that the violating party “cure” the issue to be in compliance with the agreement or 2.) claiming the contract is terminated while seeking damages. In either case, the violating party will be required to respond to the demand letter by a certain date before litigation or legal action occurs.

 

Table of Contents

What is a Breach of Contract Demand?

A breach of contract demand puts another party on notice that they have violated the terms of an agreement. The breach of a contract demand letter is a pre-trial court document that may be used in any litigation proceeding at a later time. There are usually demands that are made in the letter that allows the parties to resolve the matter before resorting to legal action. Depending on the agreement and the violation, it will be up to the parties involved to settle the breach.

How to Serve a Breach of Contract

In order to serve a legally compliant breach of a contract demand letter, the demanding party must write a letter that includes key details about the original agreement such as its creation date, the title of agreement, and the specific sections that were violated.

Step 1 – Detail the Original Contract Information

Any and all parts of the contract in question to the breach should be included in the demand letter. If there are multiple sections they should all be included, as the demand letter is only pertinent to the contract pieces that were breached. List the contract portions that were violated in order of most egregious violations.

Step 2 – List a Description of the Breach

A detailed description of the breach of contract should be documented. Common issues identified within a Breach of Contract Demand Letter are; parties who have failed to pay or provide goods as promised, the party now stating they will no longer provide the obligation previously agreed upon or the other party has made it unfeasible for an individual to perform the agreed-upon task.

Step 3 – Rights to Cure or Settlement Offers

If possible, a cure to the issue should be offered to the individual or party receiving the Breach of Contract Demand Letter. Potential cures may be to terminate the contract early or provide payment. Depending on the contract in question, there may have been previous “cures” identified in the contract that should be offered.

Step 4 – Deliver the Demand Letter

Although it may not be required by local state laws, to avoid delays or receipt issues, the Demand Letter should be sent via certified mail which will then provide proof of delivery and signature of individual who received it. Alternate delivery methods for the Breach of Contract Demand Letter may also be to send by first class mail or courier service.

Step 5 – Take Legal Action

If the claimant has not responded as requested, the appropriate party may pursue further legal action. Seek legal counsel when a demand letter has been met with no action or the claimant has not cured the issue to the extent agreed upon.

Statute of Limitations – By State

If a breach occurs, the Plaintiff may only bring a case within a certain number of years depending on the State.

How to Write a Breach of Contract Demand

Download: Adobe PDF, Microsoft Word (.docx), Open Document Text (.odt)

1 – Save The Contract Breach Notice From This Page

The template on this page will serve to inform a contract’s Signature Party that he or she has violated an agreement they are obligated to uphold. You may save it to your computer in any of the formats labeling the buttons shown with the preview image on this page. Determine the file version most compatible with your software environment, select the correct button (or link above), then follow the prompts to open and save it.

2 – The Heading Will Feature Information You Input

The first four empty spaces of this template are placed at the top of this page. This area is commonly known as the header for most correspondence and should contain certain information. Thus, produce the full name and address of the originator of this notice or the Sender of this document. This is usually an individual who holds a contract with the Recipient and believes that Recipient to have violated the terms of their agreement. Two more items of definition will be required to complete the heading of this letter. The first of these is the calendar date when this letter should be considered in full effect. This date should be presented as a calendar month and a calendar day on the blank space attached to the word “Date” then the two-digit year should be produced on the blank line attached to the number “20.” The last header item will identify the party who has violated the concerned agreement. Place the full name of the Recipient on the blank line corresponding to the word “Dear” at the beginning of the letter itself. 

3 – A Documentation Of Relatable Facts Must Be Submitted

This letter will present the required wording to inform its Recipient that he or she is responsible for not upholding the agreement held with the Sender of this document however, you must apply some details so that it can directly relate to the Recipient. First, call out the contract that was violated by the Recipient by producing its name and/or file number on the blank space after the word “…Titled” and before the term “…And Dated.” The introductory paragraph will need some further identification of the breached contract. Utilize the next two blank lines as a place to report the effective date or signature date of the breached contract. Now, locate the phrase “…Agreement Due To The Following Actions.” The space directly after this term must be populated with a clear detail of what the Recipient did to violate the agreement held with the Sender. For instance, Recipient may be guilty of fraud or property damage. The third paragraph will also require some information. Here, you must make sure the name of the state whose court system governs the breached agreement should be presented. Furnish this item to space after the words “…State Of.” In most cases, it would be considered extremely wise to impose a deadline on the Recipient to contact the Sender and correct the agreement violation. This should be accompanied with language that will strongly inform the Recipient of the consequences of not taking this letter seriously. Produce this date to the area following the term “If There Is No Response By…” 

4 – The Sender Of This Document Must Sign His Or Her Name

This notice will need to be viewed as a serious matter by its Recipient. Thus, the blank space underneath the word “Sincerely” (at the end of this letter) should be signed by the Sender. This act is taken as proof of the Sender’s intention to follow up on the contents of this paperwork.