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Vertalis Business Law Glossary

Business Disputes

Demand Letter

By Tim Nichols

In plain English

A written communication asserting a claim and requesting payment, performance, or another response by a stated deadline. It can document the dispute and satisfy some contractual or statutory prerequisites when properly prepared. Sending a demand does not establish that the claim is valid or automatically stop a limitations period.

Types and key distinctions

Presentment

The presentation of a claim or demand to the party expected to pay or perform. In Texas contract litigation, proper presentment and the statutory payment opportunity can be prerequisites to recovering attorney's fees under Chapter 38. A demand letter may accomplish this, but its adequacy depends on the claim and circumstances.

Disputes & Litigation
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