A letter of demand is a letter to the other party asking for money to be paid. It warns the other party that if this is not done you may start a court case to recover the money they owe you.
It is important to clearly tell the other party that you believe they owe you money, and how much. They may have forgotten or not realised that they owed you money, or there could be some other misunderstanding.
By sending a simple letter setting out your claim, you might convince them to pay the money and therefore avoid the need to start a case in court. This will save you time and money. If you end up having to go to court, the letter is evidence of you asking for your money back.
If there is an Apprehended Violence Order (AVO) against you, protecting the other party or anyone they have a domestic relationship with, you should get legal advice before sending a letter of demand. Sending a letter of demand may be a breach of the AVO.
When writing your letter, make sure you include:
Your letter of demand should tell the other party:
Once you have written the letter:
keep a record of where, when and how you delivered the letter.
After the other party gets your letter of demand they might:
If you cannot reach an agreement with the other party, you will need to decide whether to start a case in court. It is a good idea to try to resolve your dispute with the other party, before going to court. For more information, see Resolving your dispute.