April 7, 2025 · 8-minute read
Key Takeaways
What exactly is a formal demand letter?
It's a bit like an ultimatum. It's an official letter you send to someone who may have wronged you, borrowed money, or breached a contract.
You tell them that if they don't comply within a specified timeframe, you will take legal action. It's a way to show you're serious and want to resolve the issue formally.
It's an important step before going to court
This shows you've tried to resolve things amicably and gave the other party a chance to fulfill their obligations.
It's a formal document, so if you want to send one, it's advisable to consult a lawyer or use an online demand letter service.
Why understanding the process matters
A demand letter is a key legal process. It involves sending an official letter to the person or business, asking them to comply or settle their debt within a specified period. If they don't, you may be entitled to take legal action.
The goal is to get compensation. Understanding how it works helps protect your rights and interests.
When can I send a demand letter?
Sometimes, using a mediation service can avoid many problems. But there's no specific moment when you must send a demand letter. It depends on the dispute and what you hope to achieve.
Best practices before sending a demand letter:
1. Try to resolve the issue amicably and keep records showing your efforts.
2. Make sure you have a legitimate reason to send the letter. Don't send it without valid grounds.
3. Keep written records of all prior communications to prove you tried to settle the matter amicably.
Location and jurisdiction
In Quebec, the relevant location is the recipient's. The competent jurisdiction depends on the recipient's address. If they don't live in Quebec, then it's based on their residence, place of business, or where they own property. Unlike what many think, where the dispute happened isn't decisive, except in specific cases like real estate. So, what matters most is the recipient's address and postal code, not the sender's or where the dispute arose.
What to include in a demand letter
| Recipient | |
| The demand | |
| Deadline | |
| Evidence |
First, identify the recipient — a person, company, or contractor. Be clear about your claim, what you believe they owe you.
Set a deadline for resolution to show you're serious.
Provide evidence like unpaid invoices or contracts.
* The phrase "without prejudice":
This means you reserve the right to take legal action later. If timing is urgent, add "without further notice or delay".
How to send a demand letter
Preferably use registered mail to prove it was sent and received.
Hand delivery is less common but possible. Bring a witness, note the date/time, and get an acknowledgment.
Other options include Canada Post, fax, or email, but these are less reliable as proof of receipt.
Do I need a bailiff?
Registered mail is cheaper and less formal, but less effective if the recipient refuses to sign or the mail is lost.
A bailiff delivers it in person and provides proof. It's more expensive and formal but more reliable.
In Quebec, expect to pay between $150 and $400 for a bailiff, including fees and travel.
If the person doesn't respond, you can start legal proceedings.
Free demand letter templates: beware!
Be cautious with free templates:
They may not be legally valid in your jurisdiction.
They might be incomplete or miss key elements.
They could be poor quality or contain errors.
They may not fit your specific situation.
It's best to consult a lawyer or professional, especially if the case is complex or high-stakes, to ensure your letter is valid and effective.
Where to start if you want to send a demand letter
If you've tried amicable solutions and hit a wall, it's time to move forward. You can consult a lawyer, use an online service, or a free template.
See the Top 5 Online Demand Letter Tools
Make sure that:
- All necessary elements are included and clearly drafted
- It's delivered properly, as mentioned above
- You have the evidence to support your claims
These will be crucial if your demand is ignored and you need to go to court.
Small Claims Court in Quebec: an alternative?
Before going to court, you can try free mediation services. If that fails, Small Claims Court is an option for claims under $15,000. You represent yourself, saving on legal fees.
You can send a demand letter before filing, or skip it and file directly.
You'll need to fill out a form and provide documents like invoices. It's a practical, low-cost way to resolve disputes quickly.
What if you receive a demand letter?
Take it seriously. Here's what to do:
Don't panic. Stay calm and think strategically.
Consult a lawyer to understand your rights and the best response.
Respond within the deadline, even if you disagree, or risk losing your defense rights.
Received a demand letter? How to respond
Learn how to respond: check its validity, follow a decision tree, and understand the importance of a proper reply.
How to respond
How to write a demand letter
Draft it clearly and precisely. Include:
- Identification of the parties
- Nature of the claim
- Deadline for resolution
- Facts and evidence
Avoid mistakes like:
- Using overly technical terms
- Making ambiguous demands
- Leaving out crucial information
- Making exaggerated or abusive demands
Understanding response deadlines
Pay attention to the deadlines in the letter.
Unless otherwise stated, deadlines are calendar days, including weekends and holidays.
Don't delay. Ignoring or missing the deadline can have legal consequences.
Conclusion
If you're struggling to draft your letter, you can use online examples or customizable templates. Choose one suited to your situation.
Or use an online service. Our site offers plenty of advice to help you draft an effective letter.
See the Top 5 Online Demand Letter Tools
* This text provides general legal information in Quebec and is not legal advice. For your specific situation, consult a lawyer.
