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Letter of Demand in Singapore: What It Means and How to Send One

Suppose you are contemplating issuing a letter of demand in Singapore. In that case, you are likely facing a serious legal or financial dispute—such as an outstanding debt, a breach of contract, or a commercial disagreement.

In such cases, a properly structured letter of demand serves not merely as a formal notice but as a strategic legal instrument. It signals your intent to seek redress while providing the recipient with an opportunity to resolve the matter without immediate court intervention.

What Is a Letter of Demand?

A letter of demand is a formal written notice sent by a creditor or their lawyer to recover an outstanding obligation—often a sum of money. In Singapore, this letter acts as a precursor to legal proceedings and gives the recipient a final opportunity to resolve the matter amicably before court action is taken.

This document outlines the amount owed, the legal basis for the claim, and a deadline for settlement. It can be used in disputes involving unpaid invoices, breach of contract, loan defaults, and other civil matters.

When Should You Send a Letter of Demand?

A letter of demand is usually sent when all other informal efforts to resolve a dispute have failed. It serves as a final warning before escalating to litigation.

Common situations include:

Non-payment of goods or services
Rental arrears
Outstanding loans
Breach of contract
Damages from negligence

By sending a letter of demand, the sender demonstrates that they have taken reasonable steps to settle the issue out of court. This can later support their case if legal proceedings are initiated.

What Should Be Included in a Letter of Demand?

To ensure your letter of demand is effective and enforceable, it should include:

Your name and contact details
Details of the recipient (debtor)
The nature and basis of the claim (e.g., contract, invoice, or loan agreement)
The exact amount owed
Deadline for payment or response (usually 7 to 14 days)
Consequences of non-compliance (e.g., legal action without further notice)

Optional but helpful:

Bank account details for payment
Reference documents (e.g., unpaid invoices or contracts)
Statement offering an amicable settlement or negotiation

Is a Lawyer Required to Send One?

While you may write and send a letter of demand yourself, involving a lawyer adds weight and professionalism to the message—especially when dealing with high-value claims or uncooperative parties.

DL Law Corporation help clients issue letters of demand that are clear, legally sound, and persuasive. This often increases the chance of payment or settlement without needing to initiate court proceedings.

In some cases, a lawyer’s letter of demand may prompt the other party to seek legal advice, which can lead to quicker resolutions through negotiation or mediation.

What Happens After a Letter of Demand Is Sent?

After receiving a letter of demand, the recipient may:

Pay in full: The matter ends without court involvement.
Negotiate: Propose a payment plan or dispute the claim.
Ignore it: The sender may proceed with legal action.

If no response is received within the deadline, the sender may initiate formal litigation or commence a claim at the Small Claims Tribunal (for eligible cases under S$20,000, or S$30,000 with mutual agreement).

Letter of Demand vs Legal Action

A letter of demand is not a court order. It does not compel payment on its own but sets the groundwork for legal proceedings. Courts in Singapore often view such letters as evidence that reasonable steps were taken before initiating a lawsuit.

If the case proceeds to court, the letter of demand may be attached to the statement of claim to demonstrate the history of the dispute.

Can You Ignore a Letter of Demand?

Ignoring a letter of demand is unwise. Doing so may lead to:

A default judgment in court
Legal fees and interest added to the amount owed
Garnishment of wages or seizure of assets (if judgment is obtained)

If you believe the claim is baseless or inflated, it is best to consult a lawyer and respond formally to the letter.

TAKE THE FIRST STEP

Towards Resolution

If you are owed money or need to assert your legal rights, issuing a letter of demand is often the first—and sometimes most effective—step. When handled correctly, it signals your seriousness and may bring about a swift resolution.

DL Law Corporation offers reliable and professional assistance for preparing and sending letters of demand in Singapore. Our civil litigation and commercial dispute lawyers ensure that your rights are protected, your case is presented clearly, and legal risks are minimised.

We guide you not only through the drafting process but also in follow-up actions should matters escalate.

Need Help for Letter of Demand?

WHAT YOU NEED TO KNOW

Frequently Asked Questions

Can I use a template for a letter of demand?

Yes, but ensure the facts and legal basis are accurate. Templates may not cover nuances, which a lawyer can help clarify.

Is a letter of demand legally enforceable?

No, it is not a judgment. It is a formal step before taking legal action.

Do I need to send it by registered mail?

It is recommended to do so, or via email with read receipts, to prove delivery.

How long should I wait after sending one?

Typically 7–14 days. If there’s no response, consult a lawyer on next steps.

Can a letter of demand be used in court?

Yes. Courts may view it as evidence that you attempted resolution before initiating legal action.

WHAT THEY SAY

Clients' Success Stories

Mr Steven

"All I can really say is WOW! Ms Prasanna was able to settle my claim for WAY more than I ever thought it was worth. She took the time to make sure I got compensated for everything I was supposed to. She did a really wonderful job for me. She was also there for me whenever I dropped by or called."

Mr Balraj

"Thank you, DL Law Corporation. Mr Punia is a very humble person and helped a lot with my case. He's always ready to help the needy people and the best thing is that he always puts service above fees and provides satisfactory results."

Mr Gill J

"My case was very well handled by DLLC team. It was great that DLLC could settle my claim so quickly in 8 months. I feel so relieved that the lawyers resolved my matter with such speed and ease."

Mr Ivan

"I would like to thank [Ms Prasanna] profoundly for your professional and excellent counsel during the course of my successful injury claim. You have demonstrated understanding and compassion, and I felt comfortable and totally assured at all times, even though I got to know of your services from your website. My gratitude also goes to your dedicated and efficient team which have done a great job. Lastly, I will not hesitate to recommend your services to any of my family members or friends who are in the same predicament as mine."

Ms Chandren A

"Rekha has completed the overall documentation for this claim without giving us any hassle. I would definitely need to thank DL Law and Rekha for completing this process within such a good time frame."

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