1) Overview and purpose

A demand letter is a written notice formally requiring another party (the “debtor,” “respondent,” or “recipient”) to pay money, deliver property, perform an obligation, or stop a wrongful act within a stated period, with notice that failure to comply may lead to legal action.

In the Philippine setting, demand letters matter because they can:

Establish default or delay (mora) and trigger consequences like interest or damages, depending on the obligation and circumstances.
Support a later court case by showing that the claimant acted reasonably and gave the other party a chance to comply.
Satisfy contractual or legal prerequisites where a prior demand is required or expected.
Strengthen settlement leverage and preserve evidence of the claimant’s position.

A demand letter is not the same as a summons, complaint, or criminal charge. It is typically a pre-litigation document, though it can also be used mid-dispute.

2) When demand is legally important

A. To place the other party in default (mora)

In obligations to pay money or deliver a determinate thing, written demand often serves as proof that the creditor required performance, which can be important to claim:

interest (legal or stipulated),
damages,
attorney’s fees (if agreed or later justified), and
other remedies.

Demand is not always strictly required to prove delay in every situation (e.g., where the obligation is due and demand is unnecessary under the circumstances), but sending a clear demand is usually the safest practice because it reduces disputes about whether and when the debtor was required to comply.

B. To comply with contractual notice provisions

Many contracts (loan agreements, leases, sale contracts, construction contracts) require notice and cure periods before termination, rescission, acceleration, or collection. A demand letter can satisfy these, if crafted correctly.

C. To support later civil remedies

Demand letters are often used before filing cases such as:

collection of sum of money,
specific performance,
rescission,
replevin (recovery of personal property),
ejectment (unlawful detainer/forcible entry, where prior demand to vacate is often critical in practice),
quieting of title/accion reivindicatoria or other property actions (often preceded by demand to vacate/return),
partition or accounting demands, and
claims for damages.

D. For certain criminal-adjacent disputes

A demand letter is frequently used in disputes that may have criminal aspects (e.g., some forms of estafa allegations), largely as part of documenting the facts and the complainant’s efforts. It must be drafted carefully to avoid defamatory statements and to keep it professional and fact-based.

3) Demand letter vs. final notice vs. legal notice

Common variations include:

First demand: initial request, often firm but settlement-oriented.
Second/Final demand: indicates prior demand and sets a final deadline.
Notice to vacate / notice to pay and vacate: for lease/ejectment contexts.
Demand for return of property: for chattels, equipment, documents, or goods.
Demand for accounting / turnover: for funds, records, inventory, or corporate property.
Cease-and-desist with demand: for ongoing wrongful acts (trespass, nuisance, IP infringement, harassment).

4) Core elements of a strong Philippine demand letter (money or property claims)

A demand letter should be clear, complete, and evidentiary—written as if a judge might read it later.

A. Heading and parties

Include:

Date
Recipient’s full name and address (and position/company, if applicable)
Sender’s full name and address (or counsel/representative)
Subject line: “DEMAND LETTER” / “FINAL DEMAND” / “DEMAND TO PAY” / “DEMAND TO RETURN PROPERTY”

B. Statement of facts (chronological, objective)

Briefly identify:

The relationship/transaction (loan, sale, lease, partnership, service contract, delivery, entrustment, agency, deposit, employment, etc.)
Key dates (execution, delivery, maturity, due date, requests, prior notices)
What was promised vs. what happened
Any acknowledgments, partial payments, text/email admissions, or receipts

Avoid emotional language. Treat it like a narrative that can be attached as evidence.

C. Legal basis (optional but useful)

You may cite the basis in plain terms:

contract provisions (payment due date, penalties, interest, remedies),
relevant principles of obligations and contracts (duty to perform, consequences of non-performance),
property rights (ownership, possession, right to recover),
lease provisions and notice requirements, etc.

Over-citing can backfire if inaccurate. The safest approach is: state the obligation and breach, then reference the agreement and applicable remedies generally.

D. The demand itself (specific and measurable)

This is the heart of the letter. It must specify exactly what you want:

For money claims:

principal amount
agreed interest/penalties (if any)
unpaid installments and due dates
total amount due as of a cut-off date
payment method and where to pay (bank details, office address)
request for proof of payment

For property claims:

precise description of the property (brand/model/serial number, plate number, title/OR-CR references for vehicles, quantity/condition for goods, document names)
basis for your right to possess (ownership, lease expiration, termination, entrustment, refusal to return, etc.)
where/when to surrender or deliver the property
requirement to return accessories/documents/keys
condition requirement (return in same condition, ordinary wear and tear excepted)

E. Deadline / cure period

Set a clear deadline (e.g., “within five (5) days from receipt” or “on or before 20 March 2026”).

If the contract specifies a cure period, follow it.
If the matter is urgent, a shorter period can be justified, but it should still be reasonable.
For leases, the notice period is often critical in practice; use “pay and vacate” framing if applicable.

F. Consequences of non-compliance

State the next steps without threats or insults:

filing of appropriate civil action (collection, replevin, ejectment, damages),
possible claim for costs, damages, and attorney’s fees if warranted,
enforcement of contract remedies (acceleration, rescission, termination), if applicable.

Avoid claiming you “will file criminal cases” unless you are prepared and have basis; keep language measured (e.g., “we will pursue all remedies available under law”).

G. Preservation and return of evidence / records (where relevant)

For property/business disputes, include:

demand to preserve documents, CCTV, inventory logs, messages, or records,
demand for accounting and turnover of funds/records.

H. Settlement language (optional)

You may include:

willingness to discuss payment arrangements,
without-prejudice language for settlement discussions (though “without prejudice” is not a magic shield; it’s still useful signaling).

I. Signature and attachments

Sign above printed name.
If through counsel, include counsel’s details and roll/IBP number only if appropriate for your practice context.
Attach copies of key documents (contract, promissory note, acknowledgment receipt, delivery receipts, demand computation, photos).

5) Evidence and delivery: making the demand provable

A demand letter is only as strong as your ability to prove receipt and contents.

Common proof methods:

Personal service with recipient signature on a receiving copy (best).
Registered mail with registry receipt and return card (or postal tracking and certification).
Courier with tracking and proof of delivery.
Email with clear subject + attached PDF, plus delivery/read confirmations where possible, and follow-up via physical mail.
Text/message apps can support notice, but are stronger if paired with formal service.

Best practice:

Keep a receiving copy (duplicate original) for signature.
Keep your attachments set identical to what was served.
Keep screenshots/printouts of tracking and delivery confirmation.
Keep a computation sheet showing how you arrived at the demanded amount.

6) Computation section for money demands (how to present amounts)

A clear computation reduces disputes.

Include a table or bullet summary:

Principal: PHP ____
Interest (stipulated): ____% per ____ from ____ to ____ = PHP ____
Penalty (if stipulated): PHP ____
Less partial payments: PHP ____ (dates)
Total due as of ____: PHP ____
Additional interest accrues at ____ per day starting ____ (if applicable and supported)

If there is no written interest clause, be cautious about claiming interest; you can still demand principal and note that you reserve the right to claim applicable interest/damages as allowed.

7) Demand letters for property claims (types and special considerations)

A. Demand to return personal property (equipment, vehicles, documents, inventory)

Include:

legal/contractual basis for possession,
where the property is believed to be,
demand to return and to allow inspection,
warning against disposal/transfer,
request for confirmation of location and condition.

B. Demand to vacate / return possession of real property

Used in:

expired lease, unlawful withholding, terminated lease, unauthorized occupant, or buyer-in-possession disputes.

Key points:

Identify the property with address and title/lot details if known.
State the basis for your right to possession and why the occupant’s possession is now unlawful.
Demand to vacate by a date and to pay rentals/arrears/damages, if applicable.
Include turnover instructions (keys, access cards, inventory list).
Keep language suitable for later court use.

C. Demand for delivery of title/documents

Where the dispute involves withheld documents (e.g., deeds, titles, corporate records), specify:

exactly which documents,
why you are entitled to them,
deadline and turnover method.

8) Tone and risk management (defamation, harassment, admissions)

A demand letter can create legal risk if poorly written.

A. Avoid defamatory accusations

Stick to verifiable facts. Avoid labels like “thief,” “scammer,” “fraudster,” etc. Describe actions: “You have not returned…,” “You have failed to pay…,” “Despite repeated requests…”

B. Avoid harassment or intimidation

Do not threaten violence, public shaming, reporting to employers, or viral exposure. Keep consequences limited to lawful remedies.

C. Avoid unintended admissions

Do not concede facts you may later dispute (e.g., acknowledging delivery, quality acceptance, or settlement) unless accurate. If uncertain, use careful wording: “Based on our records…” “It appears that…”

D. Consistency with your actual next steps

If you say “final demand” and then do nothing for months, it can weaken the letter’s practical impact. Draft with realistic deadlines and actions.

9) Common pitfalls that weaken demand letters

No proof of receipt.
Vague demand (“settle your obligation”) without amounts, basis, or deadlines.
Incorrect party name or wrong address.
Wrong computation, missing due dates, or overstated penalties.
Aggressive, insulting, or threatening language.
Demanding remedies not supported by contract or facts (e.g., automatic attorney’s fees without basis).
Failing to attach or reference key documents (promissory note, receipts, lease, deed).
Not specifying whether the demand is for full compliance or offering installment options.

10) Practical formats and sample templates (Philippine style)

A. Demand Letter for Payment (simple loan / unpaid obligation)

DEMAND LETTER Date: __________

To: [Full Name of Debtor] [Address]

Subject: Demand to Pay PHP [____]

Dear [Mr./Ms. ________],

Background. On [date], you received from me PHP [principal] as [loan / consideration for ___], with the understanding that you would pay the same on or before [due date] under [promissory note / agreement / messages]. Despite repeated requests, you have failed to fully pay your obligation.
Amount Due. As of [cut-off date], your outstanding balance is PHP [total], computed as follows:
- Principal: PHP ____
- [Interest/Penalty, if agreed]: PHP ____
- Less payments received (if any): PHP ____
- Total Due: PHP ____
Demand. I hereby demand that you pay PHP [total] in full within [__] days from receipt of this letter, or on or before [date], through [payment method/details]. Please send proof of payment to [email/contact].
Notice of Legal Action. If you fail to comply within the period stated, I will be constrained to pursue the appropriate legal remedies to collect the full amount due, including claims for damages, costs of suit, and attorney’s fees where recoverable.

Sincerely, [Signature] [Printed Name] [Address / Contact]

Attachments: [Promissory Note / Agreement / Ledger / Receipts]

B. Final Demand Letter for Payment (after prior demand)

FINAL DEMAND LETTER Date: __________

To: [Debtor] [Address]

Subject: Final Demand to Pay PHP [____]

Dear [Mr./Ms. ________],

This is a final demand in connection with your unpaid obligation arising from [transaction] dated [date]. Despite my prior demands on [dates], you have failed to settle your outstanding balance.

I hereby demand that you pay PHP [__] within [] days from receipt of this letter, or on or before [date].

Failure to comply will constrain me to file the appropriate case without further notice.

Sincerely, [Signature] [Printed Name]

C. Demand Letter to Return Personal Property (equipment/vehicle/documents)

DEMAND TO RETURN PROPERTY Date: __________

To: [Recipient] [Address]

Subject: Demand to Return [Property Description]

Dear [Mr./Ms. ________],

On [date], you received/retained the following property belonging to me: [detailed description: brand/model/serial no./plate no./quantity] in connection with [entrustment/lease/service/job].
Despite my requests on [dates], you have failed and refused to return the property.
I hereby demand that you return and surrender the above property, together with all accessories/keys/documents, within [__] days from receipt of this letter at [return location], during [hours], and to confirm in writing the schedule for turnover.
If you fail to comply, I will pursue the appropriate legal remedies for recovery of property and damages, and will hold you liable for any loss, damage, or unauthorized disposition.

Sincerely, [Signature] [Printed Name] [Contact]

Attachments: [Proof of ownership / photos / delivery receipt]

D. Demand to Vacate and/or Pay (possession-related)

NOTICE AND DEMAND TO VACATE / DEMAND TO PAY AND VACATE Date: __________

To: [Occupant / Lessee] [Address of Premises]

Subject: Demand to Vacate and Settle Outstanding Obligations

Dear [Mr./Ms. ________],

You are currently occupying [property address/description] under [lease/agreement] which [expired on / was terminated on] [date], and/or you have failed to comply with your obligations, including [unpaid rent/dues] amounting to PHP [____] as of [date].

I hereby demand that you:

Pay the amount of PHP [____] within [__] days from receipt; and
Vacate and peacefully surrender possession of the premises on or before [date], including turnover of keys/access devices and removal of personal belongings.

Failure to comply will constrain me to pursue the appropriate legal remedies.

Sincerely, [Signature] [Printed Name]

11) Optional clauses you may include (as appropriate)

Reservation of rights: “All rights and remedies are reserved.”
Installment proposal (if acceptable): “You may propose a payment plan within ___ days, subject to written acceptance.”
Non-waiver: “No failure to enforce shall be deemed a waiver.”
Demand for accounting: “Submit a complete accounting of funds/property handled from ___ to ___.”
Preservation notice: “Preserve all records, communications, and related documents.”

12) Checklist before sending

Correct legal names and addresses.
Clear statement of facts and obligation.
Exact amount or exact property description.
Deadline and method/location of compliance.
Measured statement of consequences.
Attach proofs and computation.
Choose a delivery method with proof of receipt.
Keep copies of everything sent and received.