How to Write and Send a Legal Demand Letter in the Philippines

A demand letter is a formal, written notice asking a person or entity to comply with a legal or contractual obligation—usually to pay a sum of money, perform a duty, stop a wrongful act, or surrender property. In Philippine practice, a well-crafted demand letter is often the first (and sometimes the last) step before litigation or barangay conciliation. This guide walks you through what it is, when to send it, what to include, how to serve it, and why it matters—with Philippine-specific rules, timelines, and sample templates.

1) Why demand letters matter under Philippine law

1.1. To place the other party in default (delay). As a rule, a debtor incurs delay only upon demand, judicial or extrajudicial. Once in delay, the debtor can be liable for damages such as legal interest and, when stipulated or allowed by law, attorney’s fees. (Civil Code, e.g., Art. 1169, 2209, 2210, 2208.)

1.2. To interrupt prescription. A written extrajudicial demand by the creditor interrupts the running of prescription. This can preserve your right to sue by resetting the prescriptive period (e.g., 10 years for actions on written contracts; 6 years on oral contracts; 4 years for quasi-delict, etc., subject to specific rules). (Civil Code, Art. 1155.)

1.3. As a statutory prerequisite or evidentiary element.

B.P. Blg. 22 (Bouncing Checks): A written notice of dishonor received by the maker/drawer and failure to pay within five (5) banking days is key to the offense’s presumption. Without proper notice, a B.P. 22 case can fail.
Some regulatory and administrative disputes (e.g., against government agencies) customarily begin with a demand/claim letter before elevating to the COA, NLRC/DOLE, etc., depending on the claim.
Barangay conciliation (Katarungang Pambarangay): Many disputes between natural persons residing in the same city/municipality require prior barangay conciliation before court filing. A demand letter is not the conciliation itself, but it often precedes filing at the barangay.

1.4. To try to resolve disputes quickly and cheaply. Demand letters settle many claims without the cost and delay of litigation. They’re also persuasive evidence that you attempted in good faith to resolve the matter.

2) When you should (and shouldn’t) send a demand letter

Send a demand letter when…

Money is due (unpaid loans, invoices, rent, deposits, wages, refunds, penalties stipulated in contracts).
There’s breach of contract (non-delivery, defective delivery, delay, violation of negative covenants such as non-compete/non-disclosure, etc.).
You need compliance or cessation (e.g., stop encroaching, remove structures, cease IP infringement, return borrowed property).
B.P. 22 is in play (notice of dishonor).
You want to interrupt prescription or trigger default to start running legal interest.

You might skip or tailor the demand when…

The obligation or the law declares that no demand is necessary (e.g., time is of the essence or the debtor expressly waived demand).
Demand would be useless (e.g., debtor clearly refuses or performance has become impossible).
Immediate injunctive relief is needed (e.g., urgent TRO). You may still send a demand, but do not delay relief.

3) What to include: anatomy of a Philippine demand letter

Use clear, professional language. Avoid insults, threats, or anything that could be construed as unjust vexation, grave threats, or extortion. Keep it factual and legally grounded.

Letterhead and sender details
- Name or company, address, email, phone, TIN/COR if relevant.
Date and addressee
- Name and position (if a company), full address. If addressed to a company, identify who should receive it (e.g., President, Managing Partner, Authorized Representative).
Subject line
- “Demand for Payment of ₱___ under [Contract/Invoice/Check No.]” or “Final Demand to Cease and Desist from [Act]”.
Introductory paragraph
- Identify the relationship and the obligation (contract title/date; invoice nos.; check nos.; delivery orders; lease).
Statement of material facts
- Chronology: what was agreed, what happened, what remains unpaid or unperformed. Attach key documents (copies of the contract, invoices, ORs/SIs, delivery receipts, checks, bank memos of dishonor, photos).
Legal basis
- Cite relevant contract clauses and, where helpful, Civil Code provisions (e.g., Arts. 1159, 1169, 2209), IP Code for infringement, or B.P. 22 for bad checks. Keep citations plain and accurate.
Specific demands
- Sum certain (principal), interest (if stipulated; otherwise legal interest—commonly 6% p.a. for forbearance of money/damages from default), penalties/liquidated damages (if any), and attorney’s fees if allowed by stipulation or recognized circumstances.
- For non-money obligations: precise acts to perform/stop (deliver item X with specs Y; remove structure; cease using mark “Z”).
Deadline and method
- A clear deadline (e.g., “within 7 calendar days from receipt” or 5 banking days for B.P. 22).
- Where and how to pay/comply (bank details, office address for pick-up, escrow).
Consequences of non-compliance
- Filing of civil/criminal/administrative action; claims for interest, damages, attorney’s fees; and initiation of barangay/mediation or regulatory escalation as applicable.
Proof, privacy, and tone
- Ask the addressee to acknowledge receipt.
- Include a line that personal data will be processed only for the purpose of enforcing legal rights (good practice aligned with the Data Privacy Act’s principles).
- Maintain a professional tone—no harassment or shaming campaigns.
Signature block
- Name and capacity (e.g., “Authorized Representative,” “Counsel”). If by counsel, use law office header and PTR/IBP/MCLE details as customary.
Enclosures
- List attachments (photocopies only; keep originals).

4) How to serve a demand letter (and prove it)

Your method of service should balance certainty of receipt, speed, and cost. For court or prosecution later, proof of receipt is crucial.

Common modes:

Personal service: Hand-deliver and have the recipient sign “Received” with name, date, and ID details. If they refuse, your server should execute a Notarized Affidavit of Service narrating the attempt, identity confirmation, date/time, and refusal.
Registered mail (with Return Card/Registry Return Receipt): Staple the registry receipt, tracking printout, and return card signed by the recipient (or certified report from the post office if unclaimed).
Reputable courier: Keep the air waybill, proof of delivery (POD), and screenshot of tracking.
Email: Use a clearly identifiable address, request read receipt, and keep server logs or screenshots. Under the Electronic Commerce Act, electronic documents and signatures are generally valid; courts accept emails with proper foundation.
Through counsel: Law office service adds formality, especially for corporate addressees.
For B.P. 22: Written notice of dishonor must be received by the maker/drawer. Best practice: registered mail with return card or personal service with acknowledgment.

Tip: Prepare a Service Packet: (a) original signed letter, (b) duplicate for “Received” stamp, (c) attachments list, (d) envelope photos, (e) affidavit of service template for your server.

5) Deadlines and strategic timing

Standard civil/commercial claims: 5–15 calendar days is common.
B.P. 22: 5 banking days from receipt of notice of dishonor.
Urgent injunctive matters: You may give 24–72 hours, but don’t bluff; be ready to file.
Barangay conciliation: You can send a demand letter first, then promptly file a complaint at the barangay if unresolved (when the dispute is covered—i.e., between natural persons in the same city/municipality and not within the exemptions).

6) Computing and claiming interest, charges, and fees

Contractual interest/penalties: Enforce as written if valid (watch for unconscionability).
No stipulated interest? Claim legal interest, commonly 6% per annum, from the date of default (usually receipt of the demand) until full payment; computation is simple interest unless the contract provides compounding.
Attorney’s fees: Recoverable when stipulated or when recognized by law/jurisprudence (e.g., bad faith, exemplary damages, or when the defendant’s act/omission compelled litigation).
VAT/withholding: For commercial invoices, coordinate with your accountant for proper receipting upon settlement.

7) Interplay with the Katarungang Pambarangay (Barangay conciliation)

Before filing certain cases in court, parties who are natural persons and reside in the same city/municipality must undergo barangay mediation/conciliation (subject to many exceptions: e.g., where a party is a corporation/juridical entity; offenses with penalties beyond the barangay’s scope; disputes involving government; urgent legal actions; parties who live in different cities/municipalities with no agreed venue, etc.).

Workflow: Demand letter → If unpaid/unresolved → Barangay complaint (Lupong Tagapamayapa) → Mediation/Pangkat hearing → Settlement (with compromise/amicable settlement enforceable as final judgment) or Certification to File Action.

8) Special contexts

8.1. B.P. 22 (bouncing checks)

Attach bank memo showing dishonor (e.g., DAIF/Account Closed).
Send written notice of dishonor and give 5 banking days from receipt to settle.
Demand should specify the check number, amount, date issued, bank, and reason for dishonor.

8.2. Lease & deposits

Cite the lease clause on deposit turnover, repairs, penalties, and notice to vacate.
For ejectment or deposits, barangay conciliation may apply before filing an ejectment case.

8.3. Employment/wage claims

A written demand can precede filing with DOLE/NLRC. Include hours, wage rates, benefits, and computations.

8.4. IP/cease-and-desist

Identify the IP (registration no., class), the infringing acts, and the exact cease demands and takedown timelines.

8.5. Claims against government

Address to the head of agency; follow agency claims procedures. Some money claims ultimately go to the COA; tort claims may follow different paths.

9) Ethical and legal pitfalls to avoid

No harassment or shaming. Do not post public “debtor” notices; avoid contacting employers or family to shame the debtor.
No threats of criminal charges merely to extort money. State legal options factually; don’t coerce.
Accuracy matters. Misstatements can backfire (e.g., libel).
Data privacy. Use only necessary personal data; secure what you send.
Don’t overreach. Demand only what is due and provable.

10) Practical checklist

Identify the exact obligation and amount(s).
Compute interests/penalties to date certain.
Gather exhibits (contract, invoices, D.R.s, ORs, photos, check memos).
Draft with a clear deadline and consequences.
Choose service mode(s) that yield proof of receipt.
Calendar the follow-up (barangay, suit, COA, regulatory complaint).
Keep a complete file (PDF + hard copy).

11) Templates (Philippine context)

Note: Replace bracketed text; keep amounts/dates precise. Sign on paper for physical service; you may also digitally sign under the E-Commerce Act. Attach only copies. These are baseline forms—tailor to your facts.

11.1. General Demand for Payment (Contract/Invoice)

Subject: Final Demand for Payment of ₱[Amount]

[Date]

[Recipient Name] [Title/Company, if any] [Address]

Dear [Mr./Ms. Lastname]:

We refer to our [Contract/Invoice/Agreement] dated [date], under which you are obliged to pay ₱[principal] for [goods/services], due on [due date]. Despite repeated reminders, the amount remains unpaid.

As of [date], your outstanding account is:

Principal: ₱[amount]
Contractual interest/penalty (if any): ₱[amount] (from [date] to [date])
Legal interest (if no stipulated interest): 6% p.a. from receipt of this demand until full payment
Other charges per contract: ₱[amount]

DEMAND: Please pay ₱[current total] within [7] calendar days from receipt of this letter by [payment method/bank details]. Upon clearance, we will issue the corresponding official receipt.

Failure to comply will leave us no choice but to pursue appropriate remedies, including filing a civil action to recover the amount due with interest, damages, and attorney’s fees, without further notice.

Please govern yourself accordingly.

Very truly yours, [Name] [Position/Company] [Signature]

Enclosures: [List: contract, invoices, delivery receipts]

11.2. B.P. 22 Notice of Dishonor and Demand

Subject: Notice of Dishonor and Demand – B.P. Blg. 22

[Date]

[Maker/Drawer Name] [Address]

Dear [Mr./Ms. Lastname]:

Please be informed that the following check(s) issued by you in our favor have been dishonored:

Check No.: [number], Bank/Branch: [bank], Date: [date], Amount: ₱[amount], Reason: [DAIF/Account Closed/etc.]

We demand that you pay the full amount of the dishonored check(s) within five (5) banking days from receipt of this notice. Failure to do so will compel us to take legal action under B.P. Blg. 22 and other applicable laws, without further notice.

Payment may be made at [address] or by deposit to [bank details]. Please coordinate with [contact person, phone, email].

Sincerely, [Name / Law Office] [Signature]

Enclosures: [Bank return memo(s); copy of check(s)]

Service instruction: Send by personal service (get acknowledgment) and registered mail with return card to evidence receipt.

11.3. Cease-and-Desist (Performance/Negative Covenant)

Subject: Final Demand to Cease and Desist from [Act]

[Date]

[Recipient Name] [Address]

Dear [Mr./Ms. Lastname]:

You are in breach of [Contract/Right] by [describe act—e.g., using our trademark “X”, encroaching on our property located at [address], disclosing confidential information], contrary to [cite clause/law].

DEMAND: Within 72 hours from receipt, (1) cease and desist from the foregoing acts; (2) remove/return [items/documents]; and (3) provide written confirmation of compliance, including [photos/undertaking]. Non-compliance will constrain us to seek injunctive relief and damages.

Very truly yours, [Name / Counsel] [Signature]

Enclosures: [Evidence of infringement/breach]

11.4. Barangay-Bound Dispute (Between Natural Persons)

Subject: Demand for Payment/Compliance (Pre-Barangay)

[Date]

[Recipient Name & Address]

Dear [Name]:

This is to demand ₱[amount] representing [loan/rental arrears/damages] under our agreement dated [date], now overdue since [due date], despite prior verbal reminders.

If unpaid within 10 calendar days from receipt, we will file a complaint with the Barangay [Name], pursuant to the Katarungang Pambarangay, without further notice.

Sincerely, [Name] [Signature]

12) Documentation to keep

Signed original; editable word-processing file; PDF copy.
Proof of service (acknowledgment receipt; courier POD; registry receipt + return card; server logs for email).
Computation sheet (principal, interests, penalties).
Calendar entries for deadlines (payment date, barangay filing window, prescription dates).
Conversation history (calls/messages), if relevant.

13) Frequently asked questions

Q: Does a demand letter need to be notarized? A: No. Notarization isn’t required; it simply converts the letter into a public document for authentication. The key is proof of receipt.

Q: Can I send via email or messaging apps? A: Yes, especially for speed. Keep receipts/screenshots. For sensitive or statutory contexts (e.g., B.P. 22), pair email with registered mail or personal service to prove receipt.

Q: What if the debtor ignores the letter? A: Proceed to barangay conciliation (if applicable) or file the appropriate civil/criminal/administrative case. Your letter and proofs will support your claims for interest, damages, and fees.

Q: Will sending a demand interrupt prescription? A: Yes, a written extrajudicial demand interrupts prescription. Keep a copy and proof of delivery.

14) Final pointers

Be precise with dates, amounts, and legal bases.
Choose service methods that generate evidence of receipt.
Use measured, professional tone throughout.
Align next steps with the applicable forum: Barangay, COA, NLRC/DOLE, IPO-PHL, regular courts, or prosecution.
When stakes are high or facts are complex, consider having counsel draft or vet the letter—small drafting choices can have large legal consequences.

This material is a general guide for Philippine practice and is not a substitute for tailored legal advice on specific facts.