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Breach of Contract Demand Letter

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.
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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 (5 steps)

  1. Detail the Original Contract Information
  2. List a Description of the Breach
  3. Rights to Cure or Settlement Offers
  4. Deliver the Demand Letter
  5. Take Legal Action

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.

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.

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.

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.

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.