A practical legal guide in Philippine context (with templates, strategy, and common pitfalls).

1) What a demand letter is (and why it matters)

A demand letter is a written notice formally asking another party to pay a sum, perform an obligation, stop a wrongful act, or comply with a contract, within a stated period—often with a warning that legal action may follow if they refuse or ignore it.

In the Philippines, a demand letter is not just “courtesy.” It often has real legal effects:

Puts the other party in delay (mora) for obligations to deliver or do something, when required (Civil Code concept of delay).
Supports claims for damages, interest, and attorney’s fees by showing you gave notice and a chance to comply.
Interrupts prescription (in many cases) through extrajudicial demand (Civil Code concept that certain written demands can interrupt the running of prescriptive periods).
Establishes bad faith or willful refusal—useful in both civil and certain criminal contexts (careful: criminal accusations must be handled responsibly).
Serves as pre-litigation evidence that you acted reasonably and the other party was informed.

2) When a demand letter is necessary vs. optional

Often necessary / strongly advisable

Collection of debt / unpaid invoices / loans
Breach of contract (non-delivery, defective work, failure to provide services)
Lease issues (nonpayment, refusal to vacate, contract violations) — written demand is commonly critical before filing certain cases.
Return of property (equipment, documents, vehicles, borrowed items)
Employment money claims (final pay, benefits, reimbursements) — sometimes a written demand helps before filing a labor complaint.
Bouncing checks (BP 22) — notice/demand tied to legal presumptions and timelines is often essential in practice.

Usually optional (but still useful)

Minor consumer disputes (you can still demand, then escalate to DTI/other forums)
Neighbor/property disputes (often better handled first through barangay procedures, when applicable)

Sometimes not the best first move

When the correct first step is barangay conciliation under the Katarungang Pambarangay system (Local Government Code), if the dispute is between residents of the same city/municipality and no exception applies. In many such cases, filing in court without barangay certification can get dismissed. A demand letter can still help, but you should align it with the required conciliation route.

3) Core legal ideas in plain language (Philippine setting)

Even without quoting lengthy provisions, it helps to know the “why”:

Obligations and contracts are binding: If there’s a contract (written or even oral, depending on the situation), parties must comply in good faith.
Default/delay matters: In many obligations, the debtor becomes legally in delay after a demand (unless the law/contract says demand isn’t needed, or time is of the essence, or demand would be useless).
Written demand creates a paper trail: Courts and agencies value contemporaneous documents—your demand letter can become a key exhibit.

4) What a good Philippine demand letter should contain (checklist)

A. Heading and parties

Your full name / business name, address, contact number/email
Date
Recipient’s correct name, title (if any), and address
Subject line (clear and specific)

B. Statement of facts (chronological, specific, calm)

Include:

What agreement/transaction happened (date, place, parties)
What each party promised
What was delivered/performed
What went wrong (missed payment, defective work, refusal, etc.)
Prior attempts to resolve (calls, messages, meetings)

Tip: Write as if a judge will read it later. Keep it factual.

C. Legal basis (simple, not performative)

You don’t need to sound intimidating. You do need to connect facts to rights:

“Under our contract dated ___…”
“Under the Civil Code on obligations and contracts…”
“Your failure to pay despite repeated reminders constitutes breach…”
If applicable: cite specific contract clauses (payment terms, penalties, interest, termination, default clause).

D. The demand (precise and measurable)

A demand must be clear:

Amount due (principal)
Interest (rate and start date, if agreed; if not agreed, state what you are requesting and why)
Penalties/liquidated damages (if contract provides)
Itemized invoices, SOA, dates, OR numbers
Non-monetary demands: return property, vacate premises, stop using IP, remove defamatory posts, complete repairs, etc.

E. Deadline and mode of compliance

Give a reasonable period: commonly 5–15 days depending on urgency and complexity.
State how they can comply:
- Bank transfer details
- Where to deliver/return items
- Schedule for turnover
- Where to send proof of payment

F. Consequences (firm but professional)

Examples:

“If you fail to comply within the period, we will be constrained to pursue the appropriate legal remedies, including filing the proper civil action, with claims for damages, interest, and costs.”

Avoid threats that you cannot or should not do (e.g., harassment, public shaming, “I will have you arrested” when the matter is purely civil).

G. Reservation of rights

“We reserve all rights and remedies available under law and equity.”

H. Signature and attachments

Sign over printed name
If representing a company: position and authority
List attachments (contract, invoices, screenshots of chats, demand computation)

5) Tone, strategy, and “what wins cases”

A demand letter is both a negotiation tool and a future court exhibit. So:

Use neutral, professional language
Avoid insults, sarcasm, or “viral” threats
Don’t exaggerate facts
Don’t include unnecessary criminal accusations
Don’t include confidential personal data unless relevant
Keep it readable: headings, bullet points, short paragraphs

Common strategic approaches

Soft demand: cooperative, invites settlement
Firm demand: clearer deadline and consequences
Final demand: used after prior letters; emphasizes imminent filing

6) Computing the amount demanded (do it cleanly)

If you’re claiming money, attach an itemized schedule:

Principal: ₱___ (with dates)
Less payments already made: ₱___
Balance: ₱___
Interest: rate ___% per (month/year) from ___ to ___
Penalty (if any, per contract): ₱___
Damages (if you can justify): ₱___ (explain basis)
Attorney’s fees (if contract provides or if you will claim under law—state as claimable, not guaranteed)

Important: If no interest rate was agreed, be careful about asserting a specific rate as “automatic.” Present it as a claim supported by law/circumstances rather than a certainty.

7) How to send a demand letter in the Philippines (and prove receipt)

Proof of sending and receipt can matter as much as the letter itself.

Best practice: use multiple service methods

Personal service
- Have the recipient sign and date a receiving copy.
- If they refuse, document the refusal with a witness and note the time/date/location.
Registered mail (PHLPost)
- Keep the registry receipt and tracking info.
- Keep a copy of the mailed letter and envelope details.
Courier (private)
- Keep waybill and proof of delivery.
Email (supplementary)
- Send as PDF with clear subject line.
- Request read receipt (not always reliable) and keep sent logs.
Messenger/SMS (supplementary)
- Use only as support; keep screenshots showing the message, date/time, and profile details.

Where to send it

Use the contract address if stated.
If none, use the last known address, business address, or registered office (for corporations).
For companies, send to the registered office and address it to an officer/authorized representative.

8) Special scenarios in Philippine practice

A. Debt collection / loans

Include:

Proof of the loan: promissory note, acknowledgment, bank transfer, messages, receipts
Due date and any extensions
Demanded payment plan option (if you’re open to settlement)

B. Contracted services / construction / repairs

Include:

Scope of work, deliverables, milestones
Photos, punchlists, inspection reports
Demand for completion, correction, refund, or replacement
Set inspection/turnover schedule

C. Landlord–tenant disputes

A careful demand often covers:

Rent arrears and itemization
Demand to pay and/or vacate depending on the breach
Reference to lease terms and notice provisions
Clear deadlines and turnover instructions

D. Bouncing checks (BP 22 context)

If you are dealing with a dishonored check, the notice/demand typically must:

Identify the check number, date, amount, drawee bank
State that it was dishonored and why (as reflected in the bank return)
Demand payment within the legally meaningful period in practice (often referenced as banking days from notice of dishonor) Because BP 22 matters can be technical and high-stakes, use extra caution with wording and proof of receipt.

E. Barangay conciliation (Katarungang Pambarangay)

If the dispute is between individuals residing in the same city/municipality (and no exception applies), the proper next step may be:

File a complaint at the barangay for mediation/conciliation
Obtain certification to file action if no settlement A demand letter can still be sent, but don’t skip required conciliation where it applies.

F. Small Claims

For money claims within the small claims threshold, courts use simplified procedures. A demand letter is not always formally required, but it can:

strengthen your case
show refusal to pay
support your timeline and fairness

9) Common mistakes that weaken demand letters

Wrong party name or wrong address
Vague demand (“Pay what you owe” without computation)
No deadline
Overly emotional language or defamation
Threatening criminal charges to force payment in purely civil disputes
Claiming penalties/interest not found in the contract with absolute certainty
Sending with no proof of service
Including forged/edited screenshots or incomplete attachments

10) What to do after sending

If they comply

Issue a written acknowledgment/receipt
If partial payment: confirm remaining balance and new deadline
Consider executing a short settlement agreement with payment schedule and default clause

If they respond with excuses or denial

Ask for documents supporting their position
Offer a settlement conference (in writing)
Keep everything documented

If they ignore you

Prepare next step based on the nature of the claim:
- Barangay conciliation (if applicable)
- Small claims (if applicable)
- Regular civil action (collection, damages, specific performance)
- For lease disputes, the appropriate summary procedure (depending on facts)
- For checks, consult on BP 22 requirements and evidence

11) Templates (Philippine-style)

A. General demand letter (money claim)

[Your Name / Business Name] [Address] [Mobile / Email]

Date: [___]

Via: [Personal Service / Registered Mail / Courier / Email]

[Recipient Name] [Address]

Subject: DEMAND FOR PAYMENT – [Short Description, e.g., “Unpaid Loan” / “Unpaid Invoices”]

Dear [Mr./Ms./Company Name],

Background. On [date], you [borrowed/purchased/engaged services] from me/us under [agreement/contract/invoice] involving [brief description]. Under our agreement, you were obligated to pay ₱[amount] on or before [due date].
Breach/Nonpayment. Despite [prior reminders on dates], you have failed to pay the amount due. As of [date], your outstanding obligation is as follows:
- Principal: ₱[___]
- Less payments (if any): ₱[___]
- Balance: ₱[___]
- [Interest/penalty, if applicable, basis]
Total Amount Due: ₱[___] (See attached schedule and supporting documents.)
Demand. In view of the foregoing, I/we hereby demand that you pay the total amount of ₱[___] within [__] days from receipt of this letter, or on/before [date].
Mode of payment. Payment may be made via [bank transfer/cash/check] to:
- Bank/Account Name: [___]
- Account No.: [___]
- Or deliver payment to: [address]
Notice. Should you fail to comply within the period stated, I/we will be constrained to pursue the appropriate legal action to protect my/our rights and interests, including claims for damages, interest, attorney’s fees, and costs, without further notice.

This letter is sent in good faith to afford you the opportunity to settle the matter amicably.

Respectfully,

[Signature] [Printed Name] [If company: Position / Authority]

Attachments: [Contract/Invoices/SOA/Proofs]

B. Demand to return property

Use the same structure but define the property precisely:

Item description, serial number, quantity
Date borrowed/entrusted
Demand for return by a deadline
Place/time of return
Warning of civil action for recovery and damages

C. Final demand (shorter, after prior letters)

Refer to earlier demand(s) and dates
Restate total amount due
Give a shorter final deadline
State “final demand” clearly
Keep tone professional

12) Quick “best practice” pack (what to keep in your file)

Copy of the signed demand letter
Proof of service (registry receipt, courier POD, signed receiving copy)
Annexes: contract, invoices, chats, bank transfers, delivery receipts
Computation sheet (dated)
Timeline of events (one-page chronology)

13) A necessary caution

This article is for general informational purposes and does not replace advice tailored to your specific facts. If the dispute involves large sums, possible criminal exposure (e.g., checks), real property/possession issues, or approaching prescriptive deadlines, getting individualized legal guidance is strongly recommended.

If you tell me what type of demand you’re making (loan, unpaid salary, rent, services, bounced check, return of property, etc.) and what documents you have, I can draft a demand letter customized to your situation and preferred tone (soft / firm / final).