What to Do if Your Business Receives a Demand Letter
In many legal proceedings, a demand letter is an important first step. This is particularly true when there is a dispute between businesses, or between businesses and individuals.
A demand letter is a formal request for legal action which usually involves damages or another type of remedy, from one party to the other. The letter outlines the position of the sender, as well as what they expect to happen. The letter will also outline what will happen if the recipient does not comply. Below, one of our Utah business law attorneys outlines the steps to take if your business has received a demand letter.
Review the Demand Letter Carefully
After receiving a demand letter, it is critical that you review it so you have a full grasp on what the sender is asking for, as well as their reason for the request. Demand letters are typically filled with a great deal of legal terms and without proper legal guidance, they are not always easy to understand.
Determine if the Claims are Valid
After reading the demand letter, you must then determine the severity of the claims, and whether they are legitimate. This involves examining whether the statements made are factual, determining if there are legal grounds for the demands, and assessing the overall validity of the claims. In some cases, claims do not have a legal basis, or they may be overstated. Properly evaluating the claim can determine the strength of the position the sender is in and allow you to develop a strategy for your response.
Collect Evidence
Gathering all pertinent documentation is critical when preparing for a possible dispute. This includes collecting correspondence, contracts, receipts, and any other relevant records pertaining to the issue. Documentation is critical when building a strong defense or corroborating your claims in case the matter proceeds to litigation.
Determine Your Response
After analyzing the letter and determining what evidence you can collect, you then need to determine your response. This may include complying with the demand in the letter, entering into settlement negotiations, or disputing unfounded claims. When making your decision, it is important to work with a Utah business law attorney.
Draft Your Response
After consulting with an attorney to determine the best course of action, you must then draft a formal response. Your response should be professional, clear, and concise. It should also directly respond to each issue raised in the demand letter. A business law attorney can help draft a response that reflects the issues and your legal strategy for moving forward.
Our Business Law Attorneys in Utah Can Help with Your Response
If you have received a demand letter, taking immediate and thoughtful action is of the utmost importance. At AGS Law, our Utah business law attorneys can help you explore your options and prepare an effective response. Call us now at 801-477-6144 or chat with us online to schedule a consultation with one of our experienced attorneys and to learn more about how we can help.
Source:
utcourts.gov/en/about/courts/bc.html
