Demand letters and authorization letters are core competencies tested in the Practical Exercises component of the 2026 Bar Examinations. These documents allow lawyers to enforce clients’ rights extrajudicially, place obligors in default, interrupt prescription, fulfill statutory notice requirements, or validly delegate authority for specific acts. In Bar questions, you will typically be asked to draft one or both based on a set of facts; high scores go to drafts that are factually accurate, complete in essential elements, professionally toned, correctly formatted, and legally effective.

Core Legal Basis and Definition

Demand Letter
A demand letter is a formal written extrajudicial communication sent by or on behalf of an obligee to an obligor, stating the factual and legal basis of a claim and demanding specific performance (usually payment or a particular act) within a stated period, with notice of consequences for non-compliance.

Its primary legal basis is Article 1169 of the Civil Code: “Those obliged to deliver or to do something incur in delay from the time the obligee judicially or extrajudicially demands from them the fulfillment of their obligation.” It also draws support from Article 1159 (obligations arising from contracts have the force of law) and specific procedural rules such as Rule 70 of the Rules of Court (demand to pay or vacate in unlawful detainer) and Batas Pambansa Blg. 22, Section 2 (written notice of dishonor and demand for payment within five banking days).

Authorization Letter
An authorization letter is a written instrument by which a principal grants an agent authority to perform specific acts or transactions on the principal’s behalf. It is a manifestation of agency under Article 1868 of the Civil Code. It is distinct from a Special Power of Attorney (SPA) and is generally used for acts of administration or limited specific acts that do not fall under the enumeration in Article 1878 or require a public instrument under Article 1874 (authority to sell land or any interest therein must be in writing; otherwise the sale is void).

Essential Requisites / Elements / Components

For a Demand Letter (Recommended Structure)
A well-drafted demand letter follows this professional business-letter format and must contain:

Letterhead / Sender’s professional details — Law firm or lawyer’s name, address, contact information; lawyer’s Roll of Attorneys No., IBP No., PTR No. (for the current year), and MCLE Compliance No. (or current compliance statement).
Date — Full date of drafting or sending.
Recipient’s complete details — Full name, address (and designation if applicable).
Salutation — “Dear Mr./Ms. [Surname]” or “Dear Sir/Madam”.
Subject / Re: line — Clear and specific (e.g., “Re: Demand for Payment of Outstanding Obligation under Promissory Note dated [date]”).
Introduction — Identify the lawyer and the client on whose behalf the letter is sent, and briefly state the relationship or transaction involved.
Factual narrative — Concise, chronological statement of the material facts (dates, amounts, agreements, prior demands or reminders, and the breach or non-performance). Stick strictly to the facts given in the Bar problem.
Legal basis — Cite the relevant codal provision (e.g., Art. 1169, Civil Code; specific contract clause; or B.P. 22) that supports the demand and the existence of default.
Specific demand — Exact prestation required (precise amount or act) and a reasonable, definite deadline measured from receipt of the letter (commonly 5 or 10 days; 5 banking days for B.P. 22).
Consequences of non-compliance — Firm but professional statement of the legal steps that will be taken (filing of appropriate civil/criminal action, claim for damages, attorney’s fees under Art. 2208, interests, costs, etc.).
Closing — Courteous close (“Very truly yours,” or “Respectfully,”), signature block with full professional details, and “Counsel for [Client’s Name]”.
Enclosures — List of attached documents (contracts, promissory notes, checks, statements of account, proof of prior demands) referenced in the body.

For an Authorization Letter
Use a similar formal letter format with these essential components:

Full identification of the principal (name, age, civil status, residence) and the agent/attorney-in-fact (same details).
Clear, specific enumeration of the exact acts authorized (e.g., “to represent me before the Bureau of Internal Revenue in the processing and claiming of my tax refund” or “to receive on my behalf the title to the motor vehicle registered under my name”).
Duration or validity period (or statement that it is valid until revoked in writing).
Ratification clause — “I hereby ratify, confirm, and declare valid all lawful acts which my said attorney-in-fact may do or cause to be done by virtue of this authority.”
Signature of the principal.
Optional but recommended: Notarization block (acknowledgment) when the letter will be presented to government offices, banks, or third parties, or when evidentiary weight is important.
Limitations or exclusions if any (e.g., “This authority does not include the power to sell or encumber real property”).

Landmark Supreme Court Doctrines

Extrajudicial demand is sufficient to place the obligor in legal delay (mora solvendi) under Article 1169 of the Civil Code. However, the filing of a complaint itself constitutes a judicial demand that generally puts the defendant in default without the necessity of a prior extrajudicial demand, unless the law or the contract expressly requires prior notice.
A written extrajudicial demand by the creditor interrupts the running of the prescriptive period of the action (Civil Code, Article 1155).
Under Batas Pambansa Blg. 22, the notice of dishonor and demand for payment must be in writing and actually received by the drawer or maker of the dishonored check. Mere oral notice or demand is insufficient and failure to prove proper written notice is fatal to conviction.

Key Exceptions, Qualifications, and Distinctions

When demand is not necessary to constitute delay (Article 1169, Civil Code):
(1) When the obligation or the law expressly so declares;
(2) When from the nature and circumstances of the obligation it appears that the designation of the time was a controlling motive for the contract; or
(3) When demand would be useless (e.g., the obligor has rendered performance impossible).

Distinction – Authorization Letter vs. Special Power of Attorney
A simple authorization letter is generally sufficient for acts of administration or limited specific acts. It is insufficient (and may render the act void) for acts enumerated in Article 1878 of the Civil Code (to sell or encumber immovable property, to compromise or submit to arbitration, to waive rights or obligations gratuitously, to make gifts not usually considered acts of administration, etc.) or for the sale of land or any interest therein (Article 1874 requires the agent’s authority to be in writing). These require a notarized Special Power of Attorney in a public instrument.

B.P. 22-specific rule: The five-banking-day period within which the drawer must make good the check begins to run only upon receipt of the written notice of dishonor and demand.

Proof of service: For effectiveness (default, prescription interruption, B.P. 22 elements), send the demand letter by registered mail with return card or by personal service with acknowledgment of receipt. Keep proof.

How This Topic Appears in Bar Essay Questions

Bar examiners commonly give a factual scenario (loan, sale, lease, dishonored check, government transaction, etc.) and instruct: “Draft a demand letter…” or “Prepare an authorization letter authorizing [named person] to [specific acts] on behalf of [client].”

They expect strict fidelity to the given facts (correct names, amounts, dates, and details), a complete set of the elements listed above, professional and courteous language (never abusive or defamatory), correct legal citations where helpful, and proper formatting.

Common pitfalls that lose points:

Vague or incomplete demand (“pay what you owe” without amount or deadline).
Adding facts not stated in the problem or omitting material ones.
Failure to include lawyer’s professional credentials.
Overly broad or vague authority in an authorization letter.
Authorizing acts that require an SPA without using the proper form or notarization.
No ratification clause or no deadline measured from receipt.

Best answering technique: Produce the full document in clean business-letter format. If the question also asks for an explanation, state the governing rule with its codal basis first, then apply it directly to the facts.

Practical Application Tips and Memory Aids

Demand Letter Checklist (P-F-D-L-C-P)

Parties – correctly and fully identified.
Facts – concise, accurate narrative from the problem.
Demand – specific prestation + definite deadline from receipt.
Legal basis – cite Art. 1169 or other pertinent provision.
Consequences – clear statement of next legal steps.
Proof – plan for registered mail or personal service with acknowledgment; list enclosures.

Authorization Letter Essentials (S-I-R-L)

Specific – enumerate exact acts authorized.
Identities – full details of principal and agent.
Ratification – always include the ratification clause.
Limitations & form – state duration/revocability; notarize when advisable or required.

Quick Comparison Table

Aspect	Simple Authorization Letter	Special Power of Attorney (SPA)
Form	Private letter (may be notarized)	Public instrument (notarized deed)
Scope	Acts of administration or limited specific acts	Acts under Art. 1878 or sale of land (Art. 1874)
When Required	Routine representation, receiving documents, processing applications	Sale/encumbrance of real property, compromise, waiver of rights
Risk if Wrong Form	May be accepted for minor acts	Act may be void or unenforceable (esp. land sales)

Must Remember

Demand letters establish default under Art. 1169, interrupt prescription under Art. 1155, and are often mandatory or strategically essential (unlawful detainer, B.P. 22).
Always measure the compliance period from receipt of the letter.
In Practical Exercises drafting questions, accuracy to the given facts and completeness of elements matter more than elegant prose.
A simple authorization letter is not a substitute for a notarized SPA when the act requires special authority under Articles 1874 or 1878.
For lawyer-drafted letters, complete professional credentials (Roll, IBP, PTR, MCLE) are expected and scored.
Proof of service/receipt is critical for the legal effects of a demand letter; never assume constructive notice suffices (especially in B.P. 22 cases).

Master these documents by repeatedly drafting from hypothetical facts. Precision, completeness, and professionalism in form and substance are what separate high-scoring Bar answers from average ones.