Demand Letter (Philippines): When to Use One, Key Elements, and Where to File

A Philippine-focused explainer for individuals, businesses, and counsel. This is general information, not legal advice.

What is a Demand Letter?

A demand letter is a written, dated communication formally asserting a right and asking the other party to do (or stop doing) something by a clear deadline—e.g., pay a sum, deliver goods, perform a service, vacate a property, or comply with law/contract.

Though not a “court filing,” a properly crafted demand letter is a powerful legal tool. It can:

Place the debtor in default (mora)—which affects interest and damages.
Interrupt prescription (limitations) when it is a written, extrajudicial demand.
Satisfy statutory or rule-based preconditions (e.g., BP 22 notice of dishonor; unlawful detainer demand to vacate).
Provide evidence of good faith settlement efforts and entitlement to attorney’s fees/costs.

When Should You Use a Demand Letter?

Use a demand letter when any of the following applies:

Debt or Contract Breach
- Unpaid loans, invoices, rentals, professional fees, purchase price, or failure to perform a contractual obligation.
- To start running 6% legal interest (per jurisprudence) from demand on liquidated sums, and to document default.
Lease & Ejectment
- Unlawful detainer (lessee/occupant stays after the right to possess has ended): a written demand to pay and vacate is generally a jurisdictional prerequisite before filing ejectment.
- Forcible entry (entry by force, intimidation, threat, strategy, or stealth): prior demand is not required, but a demand letter can still be helpful evidence.
Bounced Checks (BP 22)
- While the crime is the making/issuance of a worthless check, written notice of dishonor and failure to pay within 5 banking days creates the prima facie case. Many use a demand letter to deliver that notice and invite payment.
Torts & Property Damage
- To seek payment for damage or to demand cessation of a harmful act (e.g., nuisance, encroachment), often before suit or barangay mediation.
Labor & Employment (Private Sector)
- Not required to file a case, but helpful for documenting money claims, final pay, or certificate of employment requests. (Note: some employment disputes go through SEnA—Single Entry Approach—for mandatory conciliation at DOLE before NLRC cases.)
Consumer & Regulated Sectors
- Banks/fintech, insurance, telecoms, real estate developers, utilities: demand letters frame issues and preserve evidence before going to the BSP, Insurance Commission, NTC, HSAC/DHSUD, DTI, ERC, etc.
To Interrupt Prescription
- Civil Code recognizes written extrajudicial demands as interrupting prescription, useful when the limitations period is close.
When the Contract Allows/Requires Notice
- Contracts often require notice-and-cure before termination, penalties, or suit.

When a Demand Letter May Be Unnecessary

The law or obligation declares the debtor in default without demand (e.g., obligation with a date certain that has lapsed, demand would be useless, or the debtor made performance impossible). Still, sending one is often prudent proof.

Legal Foundations to Keep in Mind

Default (mora) generally requires demand unless an exception applies.
Prescription is interrupted by written extrajudicial demand (keep proof).
Interest on liquidated sums typically runs from demand (judicial or extrajudicial), at the legal rate (commonly 6% per annum under controlling jurisprudence), unless the contract or special law provides otherwise.
Attorney’s fees and damages may be supported by a documented, reasonable demand and refusal.

(Specific Articles/Cases intentionally omitted for readability; lawyers will know the controlling Civil Code provisions and jurisprudence.)

Key Elements of a Strong Demand Letter

Heading and Sender Details
- Your name/legal identity, address, email/phone. If a company, include registration details and signatory authority.
Addressee
- Full legal name and address.
- For corporations/partnerships: attention to Corporate Secretary or authorized officer; include principal office address from SEC records or contract.
Re: Subject Line
- E.g., “Demand to Pay ₱___ and to Vacate,” “Notice of Dishonor & Demand (BP 22),” “Final Demand—Unpaid Invoice No. ___.”
Statement of Facts
- Chronology: contract, delivery/service, invoices, check issuance/dishonor, lease terms, prior verbal reminders. Keep it factual and specific.
Legal Basis (Concise)
- Cite contract clauses or law in plain language. Over-citation isn’t necessary; clarity is.
Demand Proper
- What exactly must be done: pay ₱___, vacate unit at [address], deliver [goods/services], cease [act], etc.
Amount Computation
- Principal, interest (rate & start date), penalties, liquidated damages, attorney’s fees (if contractually provided or justified), and total as of [date]. Include a running interest note (e.g., “plus legal interest of 6% p.a. from [date of demand] until fully paid”).
Deadline
- A specific date or number of calendar days (e.g., “within 10 calendar days from receipt”).
Consequences of Non-Compliance
- Filing of small claims/ejectment/ordinary civil action, criminal complaint (if applicable like BP 22), report to regulator, or contractual remedies (suspension/termination, foreclosure, set-off).
Where and How to Pay/Perform
- Bank details, office address, contact person; or instructions to coordinate within business hours.
Preservation & Compliance Notes
- State that the letter interrupts prescription, places the debtor in default, and preserves rights under law and contract.
Enclosures
- Copies of contracts, invoices, checks, dishonor slips, ledgers, photos, titles, or demand-to-vacate notices.
Signature & Capacity
- Printed name, position, bar/roll number if counsel signs, and notarization (optional; helpful for authentication).

Service and Proof of Receipt (Make It Evident)

Personal delivery: have the recipient sign “received” with date/time on your file copy.
Registered mail: keep the registry receipt, affidavit of mailing, and proof of delivery (e.g., return card).
Courier: retain waybill and tracking; request signature upon delivery.
Email: use read receipt and keep server logs; attach PDFs; ensure address is the one used in the contract/business.
Messaging apps (Viber/WhatsApp/SMS): export chat with timestamps and delivery/read indicators; follow up with formal mail.
To corporations: send to principal office and attention to proper officer per contract/SEC data.
Barangay matters: service can be done before/alongside Katarungang Pambarangay conciliation.

Tip: Use two modes (e.g., registered mail + email) and keep a filed proof packet.

Tone, Compliance, and Ethics

Be firm, factual, and professional. Avoid insults and threats.
Data privacy: include only necessary personal data; state purpose (debt collection/contract enforcement) and keep records secure.
Fair collection: avoid harassment or misleading representations.

Where to File if There’s No Compliance

Your next step depends on the dispute type, amount, and who the parties are.

1) Barangay Conciliation (Katarungang Pambarangay)

Mandatory for many disputes between individuals residing in the same city/municipality where the barangay is located, with notable exceptions (e.g., disputes involving corporations/juridical persons; offenses with penalties beyond set thresholds; cases needing urgent court relief; disputes involving government; where parties reside in different cities/municipalities unless they agree; among others). Proceed at the Punong Barangay or Lupon; you’ll receive a Certificate to File Action if settlement fails.

2) Small Claims (First-Level Courts: MTC/MeTC/MTCC)

For simple money claims not exceeding the latest small-claims threshold (commonly ₱1,000,000 under the current Rule on Small Claims as amended), exclusive of interest, damages, and costs.

No lawyers’ appearance required (parties appear personally).
Use the Supreme Court forms and attach your demand letter and proof of service.

(Check the current threshold and forms before filing.)

3) Ejectment: Forcible Entry or Unlawful Detainer

Filed in the first-level courts where the property is located.

Unlawful detainer: file within one (1) year from last demand to vacate or last withholding of possession; attach your demand to vacate and proof of service.
Forcible entry: within one (1) year from dispossession.

4) Ordinary Civil Action (Breach of Contract, Damages, Specific Performance)

File in the proper court based on jurisdictional amount and venue rules. Under the latest law expanding first-level court jurisdiction, many monetary claims up to ₱2,000,000 fall within the MTC; higher amounts go to the RTC. (Verify current thresholds applicable to your case.)

5) Criminal Complaints

BP 22 (Bouncing Checks): File a criminal complaint with the Office of the City/Provincial Prosecutor where the check was issued/deposited; attach the notice of dishonor and proof of non-payment within the statutory period.
Estafa (Art. 315, RPC): Demand is not an element but helps establish deceit/damage and opportunities to pay.

6) Administrative/Regulatory Remedies

Bank/Fintech: Bangko Sentral ng Pilipinas (BSP).
Insurance/HMO: Insurance Commission.
Telecom/Internet: NTC.
Real estate developers/HOAs: HSAC/DHSUD.
Consumer sales/unfair trade: DTI.
Energy: ERC. A demand letter frames the dispute; many regulators require prior written complaint to the company.

Timelines to Watch

Demand Deadline: pick a reasonable period (e.g., 10 calendar days from receipt), unless law/contract specifies otherwise.
Prescription/Limitations: interrupted by written extrajudicial demand—but don’t rely solely on interruption; file suit if settlement fails.
Interest Running: typically from demand date for liquidated sums (or as the contract provides).
BP 22 Window: five (5) banking days after written notice of dishonor to avoid prosecution (settlement within this window may moot the case).

Practical Checklists

A. Before You Send

Identify the legal basis (contract clause/statute).
Compute amounts due and attach supporting documents.
Decide on deadline and forum you’ll go to if ignored.
Choose service modes and prepare a proof packet.
Check barangay conciliation applicability.
Ensure data privacy compliance.

B. After You Send

Track delivery and receipt.
Calendar deadline and prescriptive periods.
Prepare pleadings (small claims/ejectment/complaint) ahead of time.
Consider settlement options and payment plans.

Templates (Fill-in-the-Blanks)

Tailor these to your facts. Keep attachments and proofs organized.

1) General Money/Contract Claim — Final Demand

[Your Letterhead/Name]
[Address] • [Email] • [Mobile]
[Date]

[VIA REGISTERED MAIL / COURIER / EMAIL]

[Recipient Name / Company & Officer]
[Address]
[Email]

Re: Final Demand to Pay ₱[Amount] under [Contract/Invoice]

Dear [Mr./Ms./Attn:],

1. Facts. On [date], we [delivered/performed] [goods/services] under [Contract/PO/Invoice No. ___]. Despite due date on [date], the amount of ₱[principal] remains unpaid.

2. Basis. Under [Contract clause / Civil Code], you are bound to pay the above amount. This letter constitutes an extrajudicial demand, placing you in default.

3. Amount Due (as of [date]). 
   Principal: ₱[ ]
   Interest: [contractual or 6% p.a.] from [date due or demand]
   Penalties/Charges: ₱[ ] (per [clause])
   Attorney’s Fees (if applicable): ₱[ ] / [__%], subject to court approval.
   Total: ₱[ ]

4. Demand. Please pay the Total to [bank details/payment channel] within [10] calendar days from receipt. Coordinate with [contact person, number] for confirmation.

5. Consequences. Absent full payment by the deadline, we will file the appropriate [small claims/ordinary civil action] and pursue all legal and contractual remedies, with costs and damages.

All rights and remedies are reserved. This letter interrupts prescription.

Very truly yours,

[Signature]
[Name, Position]
[If counsel: Atty. [Name], Roll No. [ ], IBP [ ], PTR [ ], MCLE [ ]]
Enclosures: [Contract, Invoices, SOA, Delivery Receipts]

2) Unlawful Detainer — Demand to Pay and Vacate

[Landlord’s Letterhead/Name]
[Address] • [Email] • [Mobile]
[Date]

[VIA PERSONAL SERVICE / REGISTERED MAIL / COURIER]

[Tenant Name]
[Leased Premises Address]

Re: Demand to Pay Rentals and Vacate

Dear [Mr./Ms.],

You occupy the premises at [address] under [lease details]. You have failed to pay rentals for [months], totaling ₱[amount] as of [date].

You are hereby DEMANDED to:
(1) Pay the total rentals due and
(2) VACATE and surrender peaceful possession of the premises

within [15] calendar days from receipt of this letter.

Failure to comply will compel us to file an **unlawful detainer** case with the [MTC/MeTC] of [city/municipality], without further notice, and to claim rentals, damages, attorney’s fees, and costs. This demand interrupts prescription and is a prerequisite for ejectment.

Very truly yours,
[Landlord/Authorized Representative]
Enclosures: [Lease, SOA]

3) BP 22 — Notice of Dishonor & Opportunity to Make Good

[Payee’s Letterhead/Name]
[Address] • [Email] • [Mobile]
[Date]

[VIA REGISTERED MAIL WITH RETURN CARD / COURIER]

[Drawer’s Name]
[Address]

Re: NOTICE OF DISHONOR and Demand to Pay (BP 22)

Dear [Mr./Ms.],

This refers to Check No. [ ], dated [ ], drawn against [Bank/Branch] for ₱[ ], issued to [Payee]. On [date], the check was presented for payment but was DISHONORED for [Account Closed/Insufficient Funds], per bank stamp/slip attached.

You are hereby NOTIFIED of said dishonor and DEMANDED to make good the full amount of ₱[ ] **within five (5) banking days** from receipt of this notice, by cash/deposit to [details].

Failure to pay within the said period will constrain us to file a criminal complaint under BP 22, in addition to civil remedies.

Very truly yours,
[Signature/Name]
Enclosures: [Photocopy of Check (front/back), Bank Dishonor Slip]

Common Pitfalls (and How to Avoid Them)

Vague demands (“settle your account soon”) → Be exact about amount and deadline.
No proof of service → Use registered mail/courier + keep receipts and tracking.
Wrong addressee (e.g., sending to branch instead of principal office) → Check contract/SEC details.
Overreaching threats → State only lawful, realistic consequences.
Ignoring barangay conciliation when required → Case dismissal or delay.
Miscalculating interest/penalties → Show computation basis and dates.
Letting time run → Demand interrupts prescription, but still file on time.

FAQs

Q: Do I need a lawyer to send a demand letter? No. Anyone may send one. However, counsel can tighten legal theory, computation, and forum strategy.

Q: Should I notarize the demand letter? Not required, but notarization can help authenticate the letter and signatory authority.

Q: How many days should I give? Commonly 5–15 calendar days, unless the contract or law sets a period (e.g., 5 banking days for BP 22 notice of dishonor).

Q: If they partially pay, should I accept? You may accept without waiving the balance; acknowledge partial payment and preserve rights. Clarify application to interest/penalties per contract/law.

Q: Will sending a demand letter delay my case? No—often it strengthens your case and may be required (e.g., unlawful detainer; barangay conciliation; BP 22 notice).

Final Notes

Keep your facts, figures, and forum aligned.
Build a proof packet (letter, registry receipts, courier waybills, email headers, read receipts, photos, contracts, checks, dishonor slips).
After the deadline, move promptly: barangay, small claims/ejectment, ordinary civil action, prosecutor, or regulator, as appropriate.

If you want, share your facts (amounts, dates, documents, parties, and where the parties reside) and this can be tailored into a ready-to-serve demand letter with correct filing options.