In this summary, we discuss what must be included in a letter of demand, when one must be sent and the manner in which it should be delivered.
Also included herein are templates of a standard letter of demand as well as a section 129 notice.
Take note that nothing in this booklet constitutes legal advice or advice of any kind.
Readers must consult official and alternative sources before making any decisions based
on the information provided herein. Templates and examples provided by us are merely a
guideline and nothing more. We will not accept any liability whatsoever.
Take note further that this booklet is intended for personal use only and that the
unauthorized sharing hereof is prohibited.
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1. What is a letter of demand?
A letter of demand is a formal notice usually written by a legal practitioner
demanding that the person, company or other entity to whom the letter is
addressed, perform a legal obligation or requirement such as, inter alia, rectifying
an identified problem, paying a debt, alleging defamation and demanding an
apology and/or perform in terms of a contract (note that a letter of demand may
be drafted and sent by the plaintiff or applicant themselves).
A letter of demand is often sent as a courtesy attempt to get the addressee to
perform the legal obligation in order to avoid expensive and lengthy litigation and
is normally the first step in any legal proceeding. Although we say that the letter
of demand is normally the first step in the litigation process, it is not always a
compulsory first step, despite what you may think.
In certain instances, an LOD is necessary to place the debtor in mora. For
example, in cases where parties failed to specify a performance date/period. In
other instances, statute or a contract may require the delivery of a letter of
demand before legal proceedings may be instituted.
Let’s first have a look at the circumstances in which a letter of demand is not a
compulsory step in the litigious process.
2. When is a letter of demand NOT a compulsory step in the litigious process?
As mentioned already, it’s not necessary in every situation to deliver a letter of
demand to place the debtor in mora. For example, where an agreement entered
into between the parties clearly states that if payment/delivery is not made on a
specified date, the other party may proceed to issue summons without any further
notification to the defaulting party. In such an instance, service of the summons
or notice of motion will constitute an acceptable form of demand.
Whether compulsory or not, attorneys usually send a letter of demand before
proceeding with civil litigation. This is because said attorney could potentially
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expedite the matter by having it resolved without issuing summons/notice of
motion and incurring unnecessary legal costs for their client.
If proceedings are instituted without making prior demand and the defendant
settles the plaintiff’s claim after receiving the summons, the defendant can be
absolved from paying the cost of the summons. As a penalty for not sending a
letter of demand, the plaintiff would have to pay the summons cost out of its own
pocket. Therefore, from a recovery-of-costs-perspective, it makes good sense to
send a letter of demand before issuing a court process. Take note that as per
Theron v Theron; De Kock v Davidson, the rule preventing the plaintiff from
recovering summons costs on settlement of a claim where a prior demand was
not sent cannot be written in stone. Think where a matter is about to prescribe,
for example.
When a letter of demand is not a prerequisite to litigation, but you choose to send
one anyway, send it in the manner that will best get to the attention of the debtor.
Email or physical delivery tend to work best. Send it via post and the debtor will
receive it in 2025.
3. What should be included in a standard letter of demand?
A standard letter of demand (not prescribed by statute) should contain the
following:
• A brief description of the party claiming the relief;
• The cause of action or reason for the demand;
• A demand (for payment of a liquidated amount, delivery of a certain thing,
or to refrain from taking certain action, amongst other things);
• An indication of the time period within which the demand must be complied;
and
• A brief statement of the consequences of non-compliance.
• If your demand is based on a liquid document such as a statement of
account, attach it to the letter.
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