← The Law Office of Bobby Udall

Do I need to send a formal demand letter before suing over a contract?

The short answer: no, it's not legally required in most cases. But it's almost always smart strategy.

Here's why sending a demand letter makes sense, even when the law doesn't technically require it.

What a demand letter does

A demand letter is a formal written request for payment or performance on a contract. You spell out what the other party owes, when they owe it, and what you'll do if they don't comply. It's professional, documented, and creates a clear record of your attempt to resolve the dispute.

Think of it as your first serious step before litigation—a moment to say, "I'm not playing around, but I'm giving you one more chance to make this right."

Why courts and mediators appreciate it

When you walk into court or a mediator's office with a demand letter in hand, you're showing the judge or mediator that you tried. You didn't just run straight to the courthouse. That matters. Courts respect good-faith efforts to resolve disputes. A demand letter demonstrates you're reasonable and that you took this seriously before escalating.

It also becomes evidence. If the case goes to trial, your demand letter is part of the record. It shows when you notified the other party, exactly what you asked for, and how they responded (or didn't). That paper trail is powerful.

When a demand letter is essential

Some contracts actually require a demand letter before you can sue. Check your contract carefully. Some agreements include language like "the breaching party shall have 30 days from written notice to cure the breach." If your contract says this, you must follow it, or you may weaken your case.

Even if your contract doesn't require it, mediation and arbitration clauses sometimes expect good-faith communication first. Again, read what you signed.

What happens if you skip it

You can sue without sending a demand letter. There's nothing illegal about it. But you're giving up some strategic advantages:

  • You lose the chance to resolve the issue cheaply and quickly
  • You show less effort at resolution (courts notice)
  • You don't give the other party a final wake-up call, which sometimes works
  • You move straight to expensive litigation

    • Lawsuits are costly in Salt Lake City and anywhere else. Court fees, attorney time, discovery, depositions—they add up fast. A demand letter costs far less and sometimes motivates someone to settle without court.

    What your demand letter should include

    A strong demand letter clearly states the facts, identifies the contract breach, explains the damages, specifies the dollar amount owed (if applicable), and sets a reasonable deadline for response—usually 10 to 30 days. It should be professional, not emotional or threatening.

    This is where having a lawyer help matters. A carefully worded demand letter from a law office carries more weight than one you write yourself. It signals you're serious, and it protects you from saying something that could backfire later.

    Next steps

    If you're considering a contract dispute, don't rush into court. Talk to someone who can review your contract, advise whether a demand letter is required, and draft one that strengthens your position.

    ---

    About The Law Office of Bobby Udall

    The Law Office of Bobby Udall serves Salt Lake City and the surrounding area with practical legal guidance on contract disputes and business matters. If you're facing a contract breach and need help deciding whether to send a demand letter or take the next step, call today to discuss your situation. Visit us at https://bobbyudall.com or reach out by phone to get started.

    The Law Office of Bobby Udall
    801.980.7777 | 801.981.4679
    https://bobbyudall.com
    More answers from The Law Office of Bobby Udall