1) What a demand letter is—and what it isn’t

A demand letter is a formal written notice that:

states the facts and your claim,
identifies what you want the other party to do (pay, deliver, stop an act, repair, return, vacate, etc.),
sets a deadline to comply, and
warns that you may pursue legal remedies if they refuse.

It is not a court pleading, not a judgment, and not a guarantee you will win in court. It is a strategic, evidence-producing step that often resolves disputes early—and, when it doesn’t, helps you later prove notice, default, and bad faith.

General information only; not legal advice. For high-stakes matters, get advice tailored to your facts.

2) Why demand letters matter under Philippine law

A well-written, properly served demand letter can have real legal effects, especially in civil disputes:

A. It can place the debtor/obligor “in delay” (mora)

In many obligations, the debtor is considered in delay only after a judicial or extrajudicial demand. Delay matters because it supports claims for damages, interest, and other consequences of non-performance.

B. It can interrupt prescription (limitations period)

A written extrajudicial demand can interrupt the running of prescription for certain actions. This is a major reason demand letters should be in writing and provably received.

C. It strengthens proof of bad faith and entitlement to damages/fees

Even if a demand letter is not strictly required, it often helps show:

the other party had notice and time to comply,
refusal was unreasonable,
you acted in good faith,
and you mitigated damages by offering a clear chance to cure.

D. It can be crucial in “check” cases and fraud-like disputes (with caveats)

For bouncing checks (B.P. Blg. 22), the legally sensitive piece is typically notice of dishonor and the statutory opportunity to pay after notice. Demand letters commonly serve as (or accompany) that notice, but the key is proper notice and proof of receipt.

For estafa-type situations, demand may not always be a strict element, but it can be powerful evidence of refusal to return or account for property/money.

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

Common situations where demand letters are used

Unpaid loans / utang / promissory notes
Unpaid invoices / services rendered
Breach of contract (supplier failed to deliver, buyer failed to pay, contractor defects)
Lease disputes (unpaid rent, demand to vacate, repairs)
Property damage (vehicle, negligence, construction damage)
Return of property (borrowed items, withheld documents, company equipment)
Consumer complaints (defective goods/services, refunds)
IP/online issues (cease and desist—copyright, trademark, unfair competition)
Employment money claims (final pay, benefits—handle carefully)

When a demand letter may be unwise (or requires extra care)

Safety risks / domestic violence / harassment contexts (use counsel; avoid escalation)
Ongoing negotiations where a harsh letter will collapse settlement
You lack a clear factual or legal basis and the letter could backfire (e.g., defamation, abuse of rights)
The dispute is subject to mandatory barangay conciliation and you plan to file in court soon: a demand letter can still help, but don’t confuse it with required Katarungang Pambarangay steps.

4) Barangay conciliation vs. demand letters (don’t mix them up)

Many disputes between individuals residing in the same city/municipality (and not falling under exceptions) may require barangay conciliation before you can file certain court cases. A demand letter:

does not replace barangay proceedings, and
is not the same as a barangay summons/mediation.

In practice: send a demand letter to document notice and attempt settlement, then—if applicable—proceed to barangay for the required certification to file action.

5) The anatomy of a strong Philippine demand letter

A. Heading and parties

Include:

Your full name, address, contact details
Date and place
Recipient’s name, address, and identifiers (company name, owner, position)
Subject line (e.g., “DEMAND FOR PAYMENT” / “FINAL DEMAND TO VACATE”)

For companies, address it to an authorized officer (e.g., President/Managing Partner/HR Head/Corporate Secretary) and use the principal office or known business address.

B. Clear statement of facts (chronological, specific, unemotional)

Write like a judge will read it later:

what happened,
when and where,
what was agreed,
what was delivered/performed,
what was paid (if any),
what remains due or undone.

Avoid insults, speculation, or threats.

C. Legal basis (brief, not a thesis)

Cite the basis in plain terms:

contract terms (quote the relevant clause),
obligation to pay/deliver/perform,
consequences of default (interest, penalties, damages),
and that you are making an extrajudicial demand.

You don’t need to “sound criminal” to be effective.

D. Exact demand (what you want, how, and where)

Be specific:

amount (principal + itemized charges),
what constitutes compliance (full payment, partial schedule, return of item, repair, stop act),
payment method and instructions (bank details if appropriate),
location/time for turnover or inspection.

E. Deadline that is reasonable and defensible

Common practice:

5–15 days for many civil monetary demands (context matters),
shorter where urgency is legitimate (perishable goods, ongoing infringement),
longer if performance is complex (repairs, delivery logistics).

An unreasonably short deadline can make you look oppressive and hurt settlement prospects.

F. Consequences and reservation of rights

Use controlled language:

“If you fail to comply, we will be constrained to pursue the appropriate civil/criminal/administrative remedies, including filing the necessary action(s), without further notice.”
“All rights and remedies are reserved.”

Avoid unlawful threats (e.g., “pay or else we will ruin you publicly”).

G. Attachments and evidence list

Attach and list copies of:

contract/PO/quotation
invoices/receipts/acknowledgments
proof of delivery
chat/email exchanges
photos, inspection reports
demand computation sheet

H. Signature and authority

Sign above your printed name.
If signed by an authorized representative, state the authority (e.g., Special Power of Attorney, board resolution) and attach it if helpful.
If from counsel, include law office details.

I. Optional: notarization

A demand letter does not have to be notarized. Notarization can help in limited ways (credibility, formality), but the most important thing is proof of service/receipt.

6) Tone and ethics: what to avoid (risk management)

Demand letters can create liability if mishandled. Avoid:

Defamatory statements presented as facts (“magnanakaw,” “scammer,” etc.) unless you can prove them and have a clear legal purpose.
Harassment (repeated calls/messages, contacting neighbors/employer to shame).
False threats (claiming you already filed a case when you haven’t).
Excessive disclosure of personal data (IDs, addresses, family info) beyond what’s needed.

If you’re collecting a debt, keep communications professional, factual, and privacy-conscious.

7) How to compute the amount demanded (the part people get wrong)

A demand for payment should show a clean computation:

Principal (what’s actually due)
Contractual interest/penalties (only if agreed in writing/contract; cite clause)
Legal interest (if applicable; depends on circumstances and jurisprudence)
Damages (actual, moral/exemplary where justified—don’t inflate)
Attorney’s fees / collection fees (only if contractually stipulated or legally justified)

Best practice: attach a one-page Statement of Account with dates and math.

8) Serving the demand letter in the Philippines (and proving it)

The golden rule: service is only as good as your proof

Courts care less that you “sent it” and more that you can prove the other party received notice.

A. Personal service (best when feasible)

How:

Hand-deliver to the recipient.
Ask them to sign and date your duplicate copy (“Received by: ___, date/time”).

If they refuse to sign:

Bring a neutral witness.
Document refusal in writing (date/time/place; who refused).
Consider taking a discreet photo of the delivery setting or using a courier with proof of delivery (be mindful of privacy laws).

B. Registered mail (traditional, widely accepted)

How:

Send via registered mail with tracking, keep the registry receipt.
Secure the return card or proof of delivery/attempt.

Tip: Address it correctly and keep copies of the envelope details and receipts.

C. Courier delivery

Use reputable couriers that provide:

tracking number,
proof of delivery,
recipient name/signature (if possible).

D. Email and electronic service

Email can be effective especially when:

the parties commonly transact via email,
the contract recognizes electronic notices,
you can preserve headers, timestamps, and delivery confirmations.

But: for high-stakes cases, pair email with registered mail/courier to reduce disputes about receipt.

E. Service to corporations, partnerships, and offices

Serve at:

the principal office or known business address,
addressed to an authorized officer,
received by an employee with name/position noted.

Keep delivery proof showing the business received it.

F. Keep a “service packet”

Always keep:

signed receiving copy or courier POD,
registry receipts/return card,
printed copy of the letter sent,
annexes attached,
a short affidavit of service (optional but useful).

9) After serving: what to do next

If they comply

Issue a written acknowledgment/receipt.
If partial payment or installment: draft a settlement/compromise agreement with clear default terms.
If property returned: document condition with photos and a turnover form.

If they respond with a dispute

Ask for specific defenses in writing.
Offer a structured conference.
Consider mediation (including barangay where required).

If they ignore/refuse

Choose the appropriate remedy:

Civil case (collection, specific performance, damages)
Small claims (for certain money claims—faster, simplified)
Barangay conciliation (where required)
Criminal/administrative (only if facts and elements truly fit)

A demand letter is often your bridge from negotiation to formal action.

10) Practical templates (Philippine-style)

A. Demand for Payment (General)

[Your Name] [Address] | [Mobile] | [Email] Date: [___]

Via: Personal Service / Registered Mail / Courier / Email

[Recipient Name / Company] [Address]

RE: FORMAL DEMAND FOR PAYMENT

Dear [Mr./Ms./Company],

On [date], you [borrowed/purchased/availed] from me/us [describe]. Under our [contract/invoice/undertaking] dated [date], you agreed to pay ₱[amount] on or before [due date].
Despite repeated reminders, you have failed to pay the outstanding balance. As of [date], your total unpaid obligation is ₱[total], computed as follows:
- Principal: ₱[__]
- Total: ₱[__] (See attached Statement of Account and supporting documents.)

DEMAND: In view of the foregoing, we hereby make a formal extrajudicial demand for you to pay ₱[total] within [X] days from receipt of this letter, through [payment method/details].

Should you fail to comply within the period stated, we will be constrained to pursue the appropriate remedies against you, including the filing of the necessary action(s), without further notice. All rights and remedies are reserved.

Sincerely, [Signature] [Printed Name]

Attachments: [List]

B. Demand to Vacate (Lease)

Include:

property address and unit
unpaid rent months + utilities
lease clause on termination
final date to vacate
demand to surrender keys
notice of claim for damages/arrears

C. Cease and Desist (Online/Business/Defamation/IP)

Be extra careful:

state specific acts/URLs/posts
explain why unlawful or violating rights
demand removal/cessation and preservation of evidence
avoid inflammatory accusations
set a reasonable timeframe

11) Common mistakes that weaken demand letters

No attachments or proof—just accusations
Vague demands (“settle your obligation ASAP”)
Wrong party (not the real debtor, wrong company entity)
No deadline, or an absurd deadline
Threats that sound like harassment or extortion
Misstating facts (easy to impeach later)
Serving without proof of receipt
Demanding penalties/fees not supported by contract or law

12) Quick checklist (use before sending)

Correct party name and address
Facts are chronological and provable
Exact amount or exact action demanded
Computation attached
Deadline is reasonable
Professional tone; no defamatory language
Clear consequence language + reservation of rights
Service method chosen with strong proof
Copies saved (letter + annexes + delivery proof)

If you paste your draft demand letter (redact names/addresses if you want), I can tighten the wording, improve structure, and flag legal-risk phrases—without changing the underlying facts.