A formal notice is the last step to follow to settle a dispute before taking legal action against an individual or a company. It is a registered letter with acknowledgement of receipt that invites the opposing party to fulfill its obligations in order to put an end to the conflict situation. Read on to find out how to send a formal notice.
What is a demand letter?
A demand letter is a formal document sent by one party (the creditor) to another party (the debtor) demanding payment of a debt, compensation for damages or satisfaction of another obligation. The letter states that the creditor may take legal action if the debtor does not respond to the demand.
The demand letter should be written in the form of a letter and contain certain important information, such as:
- Contact information for the creditor and debtor;
- The purpose of the notice;
- A detailed description of the situation in question;
- The claim;
- The deadline for meeting the obligation;
- Legal proceedings that may result from the failure to fulfill the obligation.
If you do not specify a time limit or if the time limit is too short, the other party is entitled to a reasonable time to respond to your request. A demand letter can be drafted by yourself. However, it is recommended that you have a lawyer draft the demand letter, as it may be used by the courts.
In addition, the law imposes a specific model letter in certain cases, such as a case involving the demarcation of land. Sometimes the Code of Civil Procedure requires that a demand letter be sent before proceeding to court. A verbal notice is not sufficient.
Why do I need to file a demand letter?
Resolve a dispute amicably
Whether it is mandatory or not, it is important to send a demand letter in order to give you the opportunity to settle the dispute amicably. This could avoid legal proceedings that could be long and costly.
Formalize the situation
A demand letter demonstrates the seriousness of the situation and encourages the debtor to respond to your request before taking more stringent measures.
Use as evidence in legal proceedings
If the other party does not respond to the demand letter, this can be used as evidence in court that you have reported the situation and that the other party has failed to resolve the defaults in a timely manner.
Obtain reimbursement of legal fees if successful
When you sue someone you have put on notice, you must pay a fee to the courthouse. These fees are reimbursable by the other party if you win the case. However, if you do not send a demand letter, you lose the right to reimbursement.
Set a deadline
A notice of default gives a clear and reasonable time limit for the other party to fulfill its obligations. In the event of default, it triggers the calculation of interest from the time limit.
When should I send a demand letter?
The demand letter is often sent after other attempts at redress, such as negotiation and mediation, have been tried. It is the last step before taking legal action. There are several situations in which you can write a demand letter:
- Claim for compensation: if you disagree with your insurer’s decision, you can send a letter of demand to ask for the compensation you are entitled to before contesting its decision in court.
- Amicable collection: you can send a formal notice to a customer for the follow-up of unpaid invoices.
- Compliance with legal obligations: a company may send a demand letter to an employee or another company to encourage compliance with applicable laws and regulations.
- Termination of contract: If one party fails to comply with the terms of a contract, the other party may send a notice of default to terminate the contract.
- Hidden defects: in the case of hidden defects, you must send a letter of denunciation to the other party before sending a formal notice.
- Other reasons: formal notice for damage to reputation, formal notice for harassment, formal notice for a neighborhood disturbance, formal notice for repayment of a loan, formal notice for intellectual property, etc.
Can an employee sue an employer in Quebec?
Who has the right to send a demand letter?
A demand letter in Quebec can be sent by any individual or corporation that has a right or claim against another person. This can include individuals, companies, organizations or institutions.
The demand letter should be sent by registered mail, but it is best to hire a bailiff, as the person in question is not likely to go to the post office to receive the letter and sign the notice of receipt. A bailiff guarantees that you will get proof of receipt.
Is it possible to send a demand letter by email?
It is possible to send a demand letter by e-mail, but this method is strongly discouraged because it is difficult to prove receipt. Delivering a demand letter by hand is also not recommended, as it is difficult to get the other party to sign.
What are the steps to follow to send a demand letter?
Write the demand letter
You should write a coherent and concise letter that mentions all the important elements, including the time limit and the consequences of not complying with the request. You can use a sample letter appropriate to the type of demand, or hire a lawyer.
Send the letter
You must send the demand letter by registered mail with return receipt to prove that the letter has been sent and received. You can also send the letter by a bailiff.
Keep a copy
It is important to keep a copy of the letter and the acknowledgement of receipt, as they may be used as evidence in legal proceedings.
Wait for the answer
You must give a reasonable time to respond to the demand letter, usually 10 to 15 days. If the other party does not respond within the time limit, you can take them to court.
How much does a demand letter cost in Quebec?
A demand letter in Quebec can cost a few hundred dollars. This varies depending on various factors, such as:
- The complexity of the situation;
- The time needed to prepare the letter;
- The lawyer’s fees.
If you decide to prepare the letter yourself, the cost may be limited to the mailing costs. However, it is important to note that the cost of the demand letter should not be the primary consideration when it comes to protecting your rights and avoiding higher costs in the future.
Who should pay the demand fee?
Generally, the person sending the demand letter must pay the costs associated with writing and mailing the letter. However, the costs of the demand letter may be recovered from the other party if they are found to be responsible for the claims made in the letter.
For example, if the demand letter is sent as part of a contractual dispute and the receiving party fails to comply with the terms of the contract, the sending party may include the cost of the demand letter in the damages sought in the lawsuit.
What if the demand letter fails?
If the receiving party refuses to comply with the requirements set forth in the demand letter and does not make any other settlement proposal, it will be necessary to initiate legal proceedings to enforce your rights.
It is recommended that you deal with a lawyer specialized in administrative law to represent you in court. For example, if you have a disagreement with a public institution, such as the SAAQ, the CNESST or the IVAC, you should contact the Tribunal administratif du Québec (TAQ).
Administrative lawyer | Steps of a recourse to IVAC, SAAQ and CNESST
Need legal assistance?
If your insurer refuses to compensate you in case of an accident at work, a traffic accident or disability, the Accident Solution law firm is the ideal ally to obtain personalized legal advice and to assert your rights. We accompany you throughout the claims’ procedure; from the administrative challenge to the legal recourse, including the preparation of the formal notice.
