Educational note: This is general legal information in the Philippine setting. A demand letter’s effectiveness depends on the facts, the contract, and the specific law involved.

1) What a “demand letter” is in Philippine practice

A demand letter (often called a formal demand or written extrajudicial demand) is a written notice sent to a person or entity (the “recipient”) requiring them to do something they are legally bound to do (pay money, deliver a thing, perform an obligation, stop an act, vacate property, return property, etc.) within a specified period, and warning of further steps if they refuse or fail.

In Philippine practice, a demand letter commonly serves four functions:

Puts the recipient on notice of the claim and the factual/legal basis.
Triggers legal consequences in obligations and damages (especially delay or mora).
Interrupts prescription of actions in certain cases (written extrajudicial demand can interrupt prescription).
Builds a paper trail to support settlement, litigation, or prosecution (where applicable).

2) Is a demand letter legally required?

General rule: often not strictly required, but strongly advisable

For many civil claims (e.g., simple collection, breach of contract), a lawsuit can sometimes be filed even without a prior demand letter—but the absence of demand may matter for delay, interest, damages, attorney’s fees, and credibility.

Key situations where a demand (or notice) is effectively required or highly significant

A) To place a debtor in “delay” (Civil Code principle)

Under the Civil Code on obligations, delay (mora) typically begins only after a demand (judicial or extrajudicial), unless the obligation falls under exceptions where demand is not necessary (see Section 3). Being in delay matters because it can:

Support damages claims,
Affect when interest starts (in many contexts), and
Strengthen claims for collection costs and sometimes attorney’s fees (subject to proof and basis).

B) Ejectment (unlawful detainer) cases

For unlawful detainer (a common ejectment case), a prior demand to pay/comply and to vacate is a core requirement. Without the required demand, the case can be dismissed for failing to meet a condition precedent. (The details—e.g., the minimum lead time and the exact demand required—depend on the kind of occupancy/lease and the governing rules/contract.)

C) B.P. Blg. 22 (bouncing checks)

In B.P. 22 practice, notice of dishonor and the opportunity to pay within the statutory period after receiving notice are central because the law treats failure to pay after notice as creating important legal presumptions. A “demand letter” for B.P. 22 is usually drafted as a Notice of Dishonor / Demand to Pay and is served in a way that can prove actual receipt.

D) Contract clauses making demand mandatory

Many contracts provide that default occurs only after written notice or that the debtor is given a cure period (e.g., 5/10/15 days) after demand. If the contract requires written notice before termination, acceleration, foreclosure steps, or penalties, then the demand letter becomes contractually required.

E) Katarungang Pambarangay (barangay conciliation)

For many disputes between individuals residing in the same city/municipality (subject to exceptions), Philippine law generally requires barangay conciliation before filing in court. A demand letter does not replace barangay proceedings—but it can:

Clarify issues for settlement,
Support the complaint at the barangay level,
Document refusal or bad faith.

3) Legal effects: delay (mora), damages, interest, and prescription

A) Delay (mora) and when demand is not required

A demand is the usual trigger for delay, but demand is not necessary in recognized situations, such as when:

The obligation or the law expressly states that no demand is needed;
Time is of the essence (the nature/circumstances show the date is controlling);
Demand would be useless (e.g., performance has become impossible due to the obligor’s act).

These exceptions are fact-specific; many disputes turn on whether demand was required to establish default and damages.

B) Interest and damages

A properly drafted demand letter helps establish:

The date of extrajudicial demand (useful in computing interest/damages in many cases),
The recipient’s knowledge of breach and refusal,
The creditor’s good-faith attempt to settle.

In Philippine jurisprudence, legal interest and the start date for interest can depend on whether the obligation is a loan/forbearance of money, whether interest is stipulated, and whether there was demand or judicial filing—so the demand letter’s date and contents can matter materially.

C) Interruption of prescription (written extrajudicial demand)

Under the Civil Code, prescription of actions may be interrupted by a written extrajudicial demand by the creditor. Practically, this is one of the strongest reasons to send a demand letter early and to preserve proof of sending and receipt.

4) “Requirements” in the Philippines: there is no single mandated format, but there are best-practice elements

There is generally no one statutory template for a demand letter across all disputes. Instead, Philippine legal practice relies on substance, clarity, good faith, and provability (proof of sending and receipt).

A demand letter is “legally sound” when it is:

Correctly addressed and identifies the parties,
Clear about the obligation and breach,
Specific about what is demanded and by when,
Supported by documents or references,
Served in a way that can be proven,
Consistent with the contract and applicable law,
Professional and not abusive or extortionate in tone.

5) Core components of a Philippine demand letter (recommended structure)

1) Letterhead / Sender details

Full name and address (or business name, address)
Contact details (optional but practical)
If through counsel: law office details, PTR/IBP details are commonly included by lawyers (practice convention)

2) Date and place

Date is crucial for timeline, default, and sometimes interest/prescription.

3) Addressee details

Full legal name of recipient and address
For companies: the registered corporate name and address; attention line to an officer if known.

4) Subject line

Examples:

“DEMAND FOR PAYMENT”
“FINAL DEMAND”
“DEMAND TO COMPLY AND CEASE”
“NOTICE OF DISHONOR AND DEMAND TO PAY (B.P. 22)”
“DEMAND TO VACATE”

5) Salutation

“Dear Mr./Ms. ___:” or “To Whom It May Concern:”

6) Brief statement of relationship / transaction

Identify the contract/transaction and date(s).
Identify obligations (payment terms, delivery, duties).

7) Statement of facts (chronological, document-backed)

Include:

What was agreed
What was delivered/performed
What was not paid/done
Prior reminders (if any)
Relevant dates, amounts, references (invoice numbers, check numbers, OR numbers)

8) Legal basis (short and accurate)

Cite the contract provisions (strongest)
Cite general principles (breach of contract, obligations)
For special cases: mention specific law/rule (e.g., B.P. 22 notice of dishonor; demand requirement for ejectment)

Avoid overloading with citations; what matters is correctness and relevance.

9) The demand itself (specific and measurable)

State clearly:

What to do (pay, deliver, vacate, return, stop)
How much (itemized if money)
Where/how to comply (payment channels, delivery location)
Deadline (a firm date or a number of days from receipt)

Itemization is best practice for money demands:

Principal
Accrued interest (basis and computation)
Penalties/liquidated damages (contract basis)
Costs (if contract allows and if substantiated)
Attorney’s fees (only if contract/law allows and subject to reasonableness and proof)

10) Consequences of non-compliance

Common and acceptable phrasing:

“Failure to comply will constrain us to pursue the appropriate legal remedies, including filing the necessary action(s) in court, without further notice.”

Be careful with threats:

Avoid language that can be read as harassment, defamation, or extortion.
If referencing possible criminal remedies (e.g., B.P. 22), keep it factual and tethered to the law and the actual circumstances.

11) Reservation of rights

Example:

“All rights and remedies are reserved.”

12) Attachments / enclosures

List them clearly:

Contract
Promissory note
Invoices/statement of account
Delivery receipts
Check details/return memo (for B.P. 22 notice)
Demand computation sheet

13) Signature block

Printed name and signature
Position/designation (if company)
If signed by counsel: “For and in behalf of ___”

14) Copy furnished (CC) (optional)

Useful for internal stakeholders; use caution with privacy and reputational harm.

6) Choosing the deadline: what counts as a “reasonable period”?

Philippine practice commonly uses 5, 7, 10, 15, or 30 days depending on:

The nature of the obligation (simple payment vs complex compliance),
Contract cure periods,
Urgency and prejudice,
Statutory timelines (e.g., B.P. 22 practice revolves around the statutory window after notice).

A good practice is to specify both:

a calendar date, and
that the period is counted from receipt (“within ___ days from receipt of this letter”).

7) Service and proof: how to send a demand letter so it can be used as evidence

A demand letter is only as strong as your ability to prove:

It was sent, and
It was received (or at least properly delivered to the correct address).

Common service methods (Philippine practice)

A) Personal delivery with acknowledgment (best for proof)

Recipient signs and dates a receiving copy.
If recipient refuses to sign, document the refusal (witness, photos, incident report, affidavit).

B) Registered mail (traditional, commonly accepted)

Keep the registry receipt, tracking, and return card (if used).
Use the correct address (contract address, last known address, business address).

C) Courier with tracking and proof of delivery

Keep the airway bill and delivery confirmation.

D) Email (increasingly practical; best when contract allows)

Best if the contract recognizes email notices.
Preserve headers, sent logs, read receipts (if any), and replies.

Best practice: Use two channels (e.g., personal/courier + email) to reduce disputes about receipt.

8) Notarization: is it required?

A demand letter generally does not need notarization to be valid. Notarization may help in limited practical ways (formality, discouraging denial), but it is not a substitute for proof of receipt and does not automatically make the contents “true.”

9) Ethical and legal risk points (important in Philippine context)

A) Avoid defamatory or insulting language

Demand letters often end up as exhibits in court. Overheated language can backfire and may expose the sender to counterclaims.

B) Avoid extortion-like framing

Demands should be limited to what is legally due. Threatening scandal, shame, business disruption, or unrelated harm to force payment can create serious legal risk.

C) Be careful when mentioning criminal remedies

Where the facts genuinely support it, mentioning potential criminal remedies can be lawful—but it should be:

fact-based,
proportional,
not used to demand something beyond what is due.

D) Data privacy and confidentiality

Include only necessary personal data; avoid copying unrelated third parties; keep attachments relevant.

10) Demand letter “types” and special content requirements

A) Demand for payment (loan, invoice, promissory note)

Include:

Principal amount
Due date(s)
Interest rate (if stipulated) and computation
Penalties/liquidated damages (contract basis)
Statement of account (attach)
Payment instructions and deadline

B) Breach of contract (performance, delivery, defects)

Include:

Specific breached clauses
Clear remedy demanded: deliver/repair/replace/refund/perform
Timeline and inspection/turnover mechanics
Preservation of evidence notice (if disputes are likely)

C) Demand to vacate (ejectment/unlawful detainer)

Include:

Basis of possession (lease, tolerance, etc.)
Ground for termination and unpaid rent/violation
Clear demand to pay/comply and vacate
Deadline consistent with applicable rules/contract
Computation of rent arrears/damages (if any)

D) Notice of dishonor and demand to pay (B.P. 22-related)

Include:

Check number, date, amount, drawee bank
Date of presentment and reason for dishonor (attach bank return memo if available)
Demand to pay the amount of the check within the legally significant period after receipt of notice
Clear instruction on payment method
Proof-focused service (personal receipt strongly preferred)

E) Demand to return property / turnover

Include:

Description of property (serial numbers, identifiers)
Basis for possession and why return is required
Deadline and turnover location
Warning of appropriate civil/criminal remedies depending on facts

11) Common mistakes that weaken demand letters

Wrong party name (especially corporations/partnerships).
Wrong address (sent to an old or unrelated address without basis).
Unclear demand (“settle your account soon”) with no deadline or computation.
Overstated amounts (unsupported interest/penalties/fees).
No attachments despite referencing documents.
No proof of receipt.
Threatening, insulting, or coercive language.
Inconsistency with the contract (wrong cure period, wrong interest rate, wrong acceleration clause).
Demanding attorney’s fees automatically without contractual/legal basis or without explaining why it’s due.
Sending a “final demand” first without a coherent narrative (not fatal, but can look unreasonable depending on context).

12) Practical drafting standards (Philippine style)

Use plain English (or Filipino) and keep sentences short.
Prefer numbered paragraphs for facts and demands.
Specify exact amounts and provide an itemized computation in an annex.
Identify the documents supporting each key fact.
Keep the tone firm but professional.
Put the compliance deadline in bold or clearly emphasized text.

13) Sample formats (templates)

Template 1: General demand for payment (sum of money)

[Your Name / Company] [Address] [Contact details]

[Date]

[Recipient Name] [Recipient Address]

Subject: DEMAND FOR PAYMENT

Dear [Mr./Ms./Name]:

This is to formally demand payment of your outstanding obligation arising from [contract/loan/invoice] dated [date], under which you agreed to [brief obligation].

Despite due demand and/or reminders, you have failed to pay the amount due. As of [cutoff date], your total outstanding balance is PHP [amount], broken down as follows:

Principal: PHP [ ]

Interest: PHP [ ] (computed at [rate/basis], from [date] to [date])

Penalties/Liquidated damages: PHP [ ] (pursuant to [clause])

Total: PHP [ ] (See Annex “A” for the detailed computation and supporting documents.)

Demand is hereby made for you to pay PHP [total] in full within [number] days from your receipt of this letter, or on or before [date], through [payment method / bank details / address].

Should you fail to comply within the period stated, we will be constrained to pursue the appropriate legal remedies to protect our rights and interests, without further notice.

All rights and remedies are reserved.

Sincerely,

[Signature] [Printed Name] [Position, if applicable]

Enclosures: [List]

Template 2: Demand to comply (non-monetary breach)

Subject: DEMAND TO COMPLY WITH [CONTRACT / OBLIGATION]

Under the [Agreement] dated [date], you undertook to [specific obligation].

You have breached said undertaking by [specific breach] on [date/s], causing [brief harm].

We hereby demand that you [precise remedial acts] within [time] from receipt of this letter, or on or before [date].

If you do not comply, we will take the appropriate legal steps, including the filing of the proper action, to enforce our rights and recover damages.

Enclosures: [evidence, photos, reports, contract]

Template 3: Notice of dishonor / demand to pay (B.P. 22 style)

Subject: NOTICE OF DISHONOR AND DEMAND TO PAY

This is to inform you that the following check issued by you was presented for payment and was dishonored:

Check No.: [ ]

Date: [ ]

Amount: PHP [ ]

Drawee Bank/Branch: [ ]

Reason for dishonor: [ ] (see attached bank return memo)

Demand is hereby made for you to pay the amount of the check in cash or manager’s check within the legally prescribed period from your receipt of this notice, at [place/method].

Failure to pay within said period will constrain us to pursue the appropriate remedies under law.

Enclosures: Bank return memo / proof of dishonor

(Service and proof of receipt are especially critical for this type.)

14) Checklist (quick compliance guide)

Before sending:

✅ Correct legal names of parties
✅ Correct address(es) (contract address + last known address)
✅ Clear factual timeline with dates
✅ Correct amount and itemized computation
✅ Attach key documents
✅ Reasonable and/or contract-compliant deadline
✅ Professional, non-defamatory tone
✅ Reservation of rights

Sending & proof:

✅ Personal receipt copy signed, or courier POD, or registered mail proof
✅ Secondary channel (email/message) if appropriate
✅ Keep a complete file: draft, final, annexes, delivery proof

15) Bottom line

In the Philippines, a demand letter is less about a rigid “format” and more about legal effect + evidentiary strength: it should clearly establish the obligation, the breach, the exact demand, the deadline, and reliable proof of receipt—while staying consistent with the contract, applicable law, and professional norms.