A
demand letter, or
LOD, i.e. a
Letter Of Demand (of payment), is letter stating a legal claim (usually drafted by a
lawyer) which makes a demand for
restitution or performance of some obligation, owing to the recipients' alleged
breach of contract, or for a
legal wrong. Although demand letters are not legally required the are frequently used, especially in
contract law,
tort law, and
commercial law cases. For example, if one anticipate a breach, it is advantageous to send a demand letter asserting that the other side appears to be in breach and requesting assurances of performances. Demand letters that are not responded to may constitute admissions by silence. Also, a demand letter will often generate a denial letter stating the basis for rejecting your side's claim, and is sometimes a good indication of what defenses will be raised if suit is brought later.