A breach of contract demand letter puts another party on notice for failing to follow the requirements of a contract. It typically demands that the other party comply with the agreement or provide some compensation for the breach.
The letter shows that you are serious about enforcing the terms of your contract and will initiate legal action if necessary. This formal demand is used as a pre-litigation strategy to enforce compliance while encouraging the other side to capitulate. It can also facilitate a dialogue to solve problems rather than create more.
What to Include
You should include certain pieces of crucial information in a breach of contract demand letter, such as:
- Information from the Original Agreement. Your demand letter should outline the details of your original contract. This should include the date it was signed, the nature of the agreement, the contractual obligations of the parties, and other pertinent details. It should also state relevant dates for performance or unique requirements outlined in the original contract.
- Description of the Breach. Breach of contract demand letters should clearly outline what breach you think occurred. The letters should describe the breach and reference specific sections in the contract that were violated due to the violation. For example, if a party fails to pay for supplies on time, the letter should explain what part of the contract was breached by these actions.
- Possible Remedies. Your breach of contract demand letter should also include what actions you may take to resolve the issue. First, you likely want the other party to comply with the contract or “cure” their previous breach. This allows the other party to fix their contract breach. It should also warn of further legal action for infringement of the contract if the other party fails to comply with your demand letter.
Serving a Breach of Contract Demand Letter
To serve a breach of contract demand letter, you should follow a few essential steps:
Step 1. Include Important Information
Make sure to include all the essential details of the agreement listed above as part of your letter before you serve it. Without this detailed description, your letter may be deficient as a formal demand letter.
Step 2. Send Letter by Certified Mail or Other Service Method
It is an excellent idea to serve your demand letter by certified mail. This service requires a signature by the recipient or other person for proof of delivery. This is essential proof that the other party was aware of the demand, so they cannot later claim they were unaware of it.
This may be an important aspect of filing a breach of contract action in some states.
You should send the letter to an official or business address when possible, not a person’s home address. You can also send a demand letter for breach of contract in other ways:
- Personal Service. You may have a process server personally hand the demand letter to the recipient. This may be necessary when a party avoids service or is challenging to find.
- Regular U.S. Mail. There is no requirement to send the breach of contract demand letter a certain way, and you can undoubtedly choose to send it via regular U.S. mail. However, this method provides no evidence that the breaching party ever received the letter. This could have significant ramifications at a later date.
Step 3: Retain Records of Service
Retain your original demand letter and any documentation from the method of service you choose. This documentation could be necessary proof if the case should require litigation.
Statute of Limitations By State
If the other party breached your contract, you only have a few years to file your claim in court. The following are the statute of limitations periods in each state:
| State | Number of Years | Statute |
|---|---|---|
| Alabama | 10 years | § 6-2-30 to § 6-2-41 |
| Alaska | 3 years | AS 09.10.053 |
| Arizona | 6 years | § 12-548 |
| Arkansas | 5 years | § 16-56-111 |
| California | 4 years | CCP § 337 |
| Colorado | 3 years | § 13-80-101 |
| Connecticut | 6 years | § 52-576(a) |
| Delaware | 3 years | § 8106 |
| Florida | 5 years | § 95.11(2)(b) |
| Georgia | 6 years | § 9-3-24 |
In determining when to file a potential claim, you should always speak to a licensed attorney in your jurisdiction for time limitations specific to your situation. Statute of limitations periods may be longer or even shorter depending on the particular facts of your case.
How to Write
In writing a breach of contract demand letter, you do not have to create a new one from scratch. You can use our template builder for step-by-step instructions. Following these guidelines can help you quickly write the proper demand letter for your situation.
Step 1: Include Party Information
Contract demand letters should include the parties’ names, addresses, phone numbers, and other relevant details. This should consist of your contact information and that of any party to the contract, not just the breaching party. If there are additional parties to the agreement, it may be appropriate to send a courtesy letter to these parties as well.
Step 2: Add Details About the Breach
Your breach of contract demand letter should list all of the pertinent details of the contract and how the other party breached that contract. Reference specific violated provisions to bolster your argument further and show you are serious.
Step 3: List Potential Cures
Include in the letter what you expect of the breaching party. Specifically, tell the breaching party what you wish to fix the problems they have created. The more specific you are about your expectations, the more likely you will get the desired result.
Details should include a date or deadline by which the breaching party must comply.
Step 4: Warn of Potential Remedies
In a separate paragraph, include what may occur if the breaching party fails to cure their violations. This should include whether you intend to pursue arbitration or litigation to enforce the contract.
If relevant, it should also include any information from the agreement that governs where a lawsuit may be filed or whether alternative dispute resolution requirements exist as a predicate to litigation.
Step 5: Sign the Letter
If applicable, the party sending the letter should include their name and title. The letter should be signed at the bottom by the sending party.
Notice of Breach: Possible Responses
While many demand letters get the other party to comply with the contract, not every party will listen to reason. When they refuse to comply with your demand letter, you may need to take additional actions like those warned in your breach of contract demand letter.
These might include, but are not limited to:
- Termination of the original agreement.
- Triggering of breach of contract provisions in the original agreement.
- Filing a complaint for breach of contract litigation in court.
- Pursuing arbitration or other dispute resolution methods.
Breach of Contract Demand Letter Sample
Download our free breach of contract demand letter template in PDF or Word format and fill it out on your own.
