How To Write a Settlement Demand Letter

Whenever two parties are in dispute, it is often that the offending or slighting party receives a demand letter for settlement from the aggrieved party. This is commonly seen in accidents where one party caused damage, both physical and emotional to a second party.

For most people, the word “demand” connotes aggression. Hence, when a person hears or sees a demand letter, most people will automatically associate it with an aggressive stance towards getting what the party who sent the letter wants. This will often be seen in how the letter is written. The tone is normally forceful and, in some cases, even rude and violent. Technically, a demand letter, especially when one is trying to collect something they are owed from another party, should never be aggressive or forceful. In fact, most demand letters that have a tone of professionalism will have a better chance of acceptance by the other party than one that threatens and arrogantly lambasts. That said if you are in a predicament where writing a demand letter of settlement is necessary to get what you deserve from the offending party, then these tips should help you compose one that will be effective.

  • Start with a light intro. Some people write letters when they are emotionally unstable, fuming mad and frustrated. Well, obviously, that should not be. You should never write the letter when you are too emotionally affected. Now, if you cannot seem to nudge the emotions aside, then have someone else write it, a lawyer perhaps.

    In any case, the letter should always begin with a light but detailed intro. It should explain what the letter is in reference to. It should summarize the details leading to the letter, particularly the cause of such a demand letter. For instance, if you are demanding settlement for a car accident, then you will want to detail the accident stating that you are aggrieved party and that you have suffered a multitude of things from physical and emotional anxiety and injury to unnecessary spending. Detail the circumstance and list down the various damages you are claiming. Make sure to touch on the facts backing the assumption that the other party is at fault.

  • Go into specifics. As soon as the intro touches on what in specific you are demanding settlement for, you can dive into the specifics. Begin with all the itemized expenses accrued due to the accident or issue. Be realistic and honest when indicating the costs incurred per item. Once you are done with that, you can now move into the damages part. This is where you will monetize your suffering, injury, or pain. Bear in mind that emotional and physical suffering due to an issue or accident can be tough to monetize. Hence, you will have to tread carefully on this part. Do not price it too high or you may turn off the other party which will result in a harder time for you to get paid.

Finally, when stating the facts, make sure to only indicate those that will present your case in a stronger light. Every statement should be backed by evidence and should be logical and realistic. That said make sure to send the letter with documented evidence attached to it to back up the entire contents of the letter such as receipts, photos, witnesses statements, and the like.


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