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A Letter Before Action (LBA) confirms the exact amount of monies owed by the debtor and gives them formal warning that if payment isn't received by the date requested, usually within 14 days, then court proceedings may commence.
What is a Letter Before Action? A Letter Before Action is the last step in your attempts to resolve a contractual dispute informally and the first step towards formal dispute resolution. It sets out your claim and provides the party in breach with a firm timeframe to respond and remedy the situation.
To sue for breach of contract, you must be able to show: Prove that there was a contract in existence ? It would need to be proven that a legally binding contract was in place and that it had been breached.
It outlines the details of the breach and informs them that if they fail to take corrective action, legal action may be taken against them. A demand letter acts as an ultimatum and pressures the breaching party to resolve the issue. Demand letters are often effective in getting what they want without going to court.
A breach of contract letter needs to be clear, professional, and polite. It should include the details of both parties, information about the breach in question, and a suggestion for resolution.