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A letter of demand is a letter from the other party asking you to return their goods, or pay you the money value of those goods. It often warns you that if this is not done they may start a case in the NSW Civil and Administrative Tribunal (NCAT).
When you receive a letter of demand, this might be the first time you find out that someone wants their goods back.
The letter may be sent by registered post or email. The demand can also be made over the phone or in person.
A letter of demand will usually state:
what goods the other party wants back
whether the other party will accept payment for the goods rather than their return
how much the goods are worth
what the other party will do if you don't return the goods or pay the value of the goods
the date by which they want the goods or money.
You can write a response to the letter of demand, explaining that you admit or deny their claim, offering to pay a different amount, or offering to pay the amount in instalments.
Sample: Response to letter of demand – goods
When the other party receives your response, they will decide whether to accept your offer, put a counter-offer or apply to NCAT.
If you and the other party reach an agreement, you should record any agreement with the other party in writing. For more information, see Put it in writing.
What you write in your response to a letter of demand could be used against you if you end up going to NCAT. If you are not sure how to respond to a letter of demand, you should get legal advice.