This is an example of a response to a letter of demand. It is important to write your response using your own details and based on your own circumstances. If you need more help, get legal advice.
Whenever you write to the other party, you should make sure you don't say anything that could be used against you in court. You should double check any money amounts and dates to make sure they are correct.
If you want to offer to settle the matter, you can write the words 'Without Prejudice' on your letter. This means that things you say in a genuine attempt to resolve the dispute out of court can't later be used against you.
Case study - Meena and Fiona
Meena runs a small business from home, doing website design and IT support for other small businesses. One of her clients, Fantastic Florists, has failed to pay her invoice of $4,000 for the website she built. Meena sent a couple of reminder letters but there has been no response. She tried to contact Fiona from Fantastic Florists by telephone but could not reach her. Meena sent a letter of demand to Fiona. Fiona sends Meena a response to the letter of demand offering to pay a lesser sum of money to resolve the dispute.
Fiona FrameFantastic FloristsShop 7, Blacktown Mall108 Black StreetBLACKTOWN NSW 2148
25 October 20xx
Meena Vishwana12/32 Campbell StreetBLACKTOWN NSW 2148Dear MeenaRE: OUTSTANDING MONEY
I refer to your letter dated 15 October 20xx and my telephone conversation with you on 17 October 20xx.
As I mentioned in the telephone call, I am willing to pay you $3,000 for your time but I don't believe that I owe you all of the $4,000 because you did not provide a quality service and didn't do what you were supposed to do.
You said that you would maintain the Fantastic Florist website and provide IT support services from May to July 20xx but during that time I experienced many problems with my computer system and the website often didn't work properly. When I tried to contact you about these problems, I usually couldn't reach you and ended up having to leave messages. On many occasions it took you two or three days to get back to me.
I am not going to pay you the amount of $4,000.
My offer of $3,000 is open for 14 days from the date of this letter.