A demand letter is letter that makes a legal claim which demands another party to take an action or make restitution.Many parties use demand letters as a way to try to resolve a dispute or breach of contract before filing a lawsuit.When a company or individual receives a demand letter, do not ignore it. It’s important to respond to the demand letter and consider the claims. Failing to do so can place the business or individual in legal hot water.When you receive a demand letter:1. Remove any personal emotions from the matter.2. Consult with an attorney about drafting a formal response if the matter is complex.3. Write the letter on company letterhead and respond in a professional matter.4. Lay out all the facts of the claim to argue your case.5. Respond within the requested time frame using both email and postal service and keep your receipts of to prove it was delivered.Take the time to try to understand the obligee’s arguments and whether they have any merit. Assessing the situation from their point of view can help you draft your counterclaims and determine if any of their demands are valid and worth compensation.Be aware that this letter can be used against you in a court of law. Being threatening or using unprofessional language can result in you having a harder time defending your case in court.Presenting a strong counter argument to the demand letter’s claims can put you in a strong position. The opposing counsel may recommend that their client drop their dispute or pursue more conciliatory resolutions.[formidable id="7" title="1"]