Demand Letter in the Philippines: Essential Elements, Legal Bases, and Best-Practice Drafting Guide

(updated to June 18 2025)

1. What Is a Demand Letter?

A demand letter (often called an extrajudicial demand) is a written notice by which one party formally calls on another to perform an obligation, cease a wrongful act, or pay a sum of money. It is not filed in court; it is served directly on the addressee and is widely used in civil, commercial, labor and even some criminal-law contexts (e.g., B.P. 22).

Sending a demand letter:

Constitutes delay (mora) under Art. 1169 of the Civil Code, thereby giving rise to liability for damages and interest.
Interrupts prescription of actions under Art. 1155.
Satisfies statutory or contractual “prior demand” requirements (e.g., B.P. 22, estafa under Art. 315 §2-d RPC, ejectment, small-claims suits, warranty enforcement, constructive dismissal).
Demonstrates good faith and fair dealing, often a prerequisite to recover attorney’s fees under Art. 2208 (11).

2. Core Legal Bases

Area	Provision	Relevance
Civil Code	Art. 1169	Delay starts “from judicial or extrajudicial demand.”
Civil Code	Art. 1155	Extrajudicial demand interrupts prescription.
Civil Code	Art. 1256	Creditor may refuse payment unless demanded; consignation rules.
Civil Code	Art. 1307 ff.	Demand often required before rescission of reciprocal obligations.
Revised Penal Code	Art. 315 (2)(d)	Demand is an element of estafa by bouncing cheque.
Batas Pambansa 22	§1	Prior written demand (or oral if proved) is essential for prosecution.
Rules of Court	Rule 70 §§1–2	Unlawful detainer/forcible entry suits need prior demand to vacate/pay.
Rule 5, A.M. 08-8-7-SC (Small Claims)	§6 (b)	Attach demand letter showing prior attempt to settle.
DOLE/NLRC practice	Before filing money-claims or illegal-dismissal cases, demand letter shows exhaustion of remedies and may support claims for moral/exemplary damages.

3. Essential Elements — The “Non-Negotiables”

Heading and return address Your name (or firm), address, phone/email; optional reference number.
Date and place of execution Demonstrates timeliness, anchors reckoning of delay and prescription.
Addressee’s complete name and address Corporate officers should be specified (Chair/President or authorized signatory).
Salutation Formal (“Sir/Madam” or specific name).
Statement of relationship and factual background • Identify contract/transaction, dates, amounts, acts or omissions. • Attach copies of contract, invoices, receipts, checks, photographs, etc. • Keep it factual; avoid argumentative tone to reduce libel risk.
Specific demand (the heart of the letter) Clearly require (a) what must be done, (b) in what manner, (c) within what definite period.

“We hereby demand that you remit the outstanding balance of ₱300,000.00 under Sales Invoice No. 1234 within ten (10) calendar days from receipt of this letter.”
Reference to legal/contractual basis and consequences of non-compliance
- Cite Civil Code articles, contract clauses, B.P. 22, etc.
- Warn of interest, damages, rescission, criminal filing, or labor complaint.
- Mention possible “attorney’s fees, litigation expenses, and costs.”
Demand period (grace period) Philippine practice favors 5-15 days in commercial matters; longer in construction or complex projects. Shorter (24-72 hours) is typical in ejectment or cease-and-desist scenarios.
Mode of payment/performance Indicate bank details, venue for delivery, who will receive, office hours, etc.
Call for amicable settlement Courts appreciate a line inviting negotiation (“Without prejudice to amicable settlement…”).
Closing and signature Include printed name, position, PRC/IBP numbers if signed by counsel. Corporate demand letters should bear board resolution or SPA if required.
Notary block (optional but advisable) Notarization converts the demand into a public document, facilitates proof of authenticity, and may simplify evidence abroad under Apostille.
Proof of service section Affix “Received by: ___ on ___” line for personal delivery, or attach courier airwaybill/registered-mail registry receipt. Service via email should activate read-receipt or include server log.

4. Recommended Structure

[Letterhead]

18 June 2025

[VIA PERSONAL & REGISTERED MAIL]

Mr. Juan D. Cruz
Managing Director
JD Traders, Inc.
1234 Paz M. Guanzon St.
Paco, Manila

Re: FINAL DEMAND — Unpaid Balance under Sales Invoice #1234 (₱300,000.00)

Sir:

    x x x  (Statement of facts)

DEMAND

    In view of the foregoing, we hereby DEMAND that you:

    1. Pay the total amount of ₱300,000.00 **within ten (10) calendar days**; and
    2. Remit said payment by manager’s check payable to ABC Supplies Corp. at
       our office, 9:00 a.m.–5:00 p.m., Mondays to Fridays.

    Failure to comply shall compel us, without further notice, to pursue civil
    and/or criminal remedies under Articles 1169 and 2208 of the Civil Code,
    and Batas Pambansa 22, including attorney’s fees and costs of suit.

    This letter is sent in good faith in the hope of an amicable settlement.

Very truly yours,

[signature]

Atty. Maria L. Reyes
Counsel for ABC Supplies Corp.
IBP No. XXXXX; PTR No. XXXXX

5. Service & Evidentiary Tips

Method	Advantages	Caveats
Personal delivery	Immediate receipt, signed acknowledgment.	May be refused; bring witness/photograph.
Registered mail	Registry return card is prima facie proof of service (Rule 13 §10).	Delivery time variable; keep registry slip.
Private courier	Faster tracking, affidavit of service available.	Some courts still prefer PhilPost for formal notice.
Email with read-receipt	Speed; useful for foreign parties.	Ensure address is contractually designated; print headers/logs.
Viber/WhatsApp	Real-time, screenshots show read-status.	Acceptability varies; combine with another mode.

6. Common Pitfalls

Omitting a definite deadline — courts may rule that delay did not commence.
Inflated or uncertain amounts — could expose sender to moral damages or libel.
Threatening criminal prosecution purely to extort — violative of Anti-Graft laws.
Unsigned or unsigned by proper party — raises authenticity issues.
Failure to prove receipt — defeats B.P. 22 or estafa prosecutions.

7. Practical Enhancements

QR code for bank transfer or online payment portal.
Running statement of account annexed for clarity.
Polite language; avoid “demand letter” in subject line when relationship salvageable.
Parallel bilingual text (English-Filipino) for labor notices.
Electronic signature with time-stamp to align with E-Commerce Act (R.A. 8792).

8. FAQs

Question	Answer
Is a demand letter required before filing a civil case?	Generally no, except where the law or contract says so. But sending one is almost always advisable because (a) it starts legal delay, (b) interrupts prescriptive periods, and (c) supports a claim for attorney’s fees.
Must it be notarized?	Not required, but notarization provides evidentiary weight and facilitates overseas use (Hague Apostille).
How long should I give the debtor?	Ten (10) days is standard for money claims; 3–5 days for ejectment; 24 hours for cease-and-desist; check statutory periods (e.g., 5 banking days under B.P. 22).
What if the addressee refuses to receive?	Leave a copy at the premises, secure a witness affidavit, or serve via courier/registered mail; refusal does not stop delay under Art. 1169.
Can I email only?	Yes if the contract designates email as the notice address or the addressee expressly consents; otherwise send hard copy as backup.

9. Conclusion

A well-crafted demand letter is more than a courtesy—it is a powerful legal instrument that (1) marks the debtor in default, (2) preserves claims against prescription, (3) satisfies statutory prerequisites, and (4) builds a persuasive evidentiary record for court or administrative proceedings. By following the essential elements and best practices above, practitioners and laypersons alike can maximize the letter’s effectiveness while minimizing procedural pitfalls.