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It serves as an attempt to resolve a dispute without going to court. Instead, it is a way for you and your lawyer to present your case to the other party to reach a settlement before initiating litigation.
Tips for Drafting an Effective Settlement Demand Letter Stay Organized and Concise. ... Do Not Make a Specific Dollar Demand. ... Take Care to Avoid Damaging Admissions. ... Rely on Persuasion, Not Threats. ... Include Relevant Documents. ... Don't Include a Deadline for Settlement Unless You Mean It. ... Include a Deadline for a Response.
Demand letters show the owner that you're serious about getting paid. Sending a demand letter prior to litigation is a sign of good faith in the eyes of the law. In court, the language in your demand letter can support your case.
The purpose of a demand letter is to begin the negotiation process that will hopefully result in dispute resolution to avoid filing a claim in court if it is possible to resolve the issue without litigation.
The Format of a Settlement Demand Letter A description of the accident. ... An explanation of why the defendant is at fault or otherwise liable for the claim. ... A brief description of your injuries and property damage. A brief description of your losses (medical expenses, lost earnings, pain and suffering, etc.).