What is a demand letter and when should I send one?

A demand letter is a formal written notice you send to another party before starting a court case. It sets out what you are claiming, why you believe you are owed it, and what you want the other side to do — pay money, stop certain conduct, return property, or fulfill a contract — usually within a stated deadline.

Demand letters serve several purposes. They put the other party on clear notice of your position and give them a chance to resolve the matter without court involvement. Courts often look favourably on parties who tried to resolve disputes before filing, and a well-written letter creates a paper trail that can support your case later.

In Ontario, a demand letter is not legally required before most civil lawsuits, but skipping it can hurt your credibility and sometimes your cost award. It is also a low-cost step that resolves a surprising number of disputes. A lawyer can draft or review your letter to make sure the tone, content, and deadline are appropriate for your situation.