The Commission Demand Letter is a crucial document used when seeking to recover unpaid commission amounts in England and Wales. It serves as a formal step before initiating legal proceedings and should be issued promptly when commission payments are overdue. The letter must clearly state the legal basis for the claim, typically referencing the commission agreement, specify the exact amount owed with calculations, and provide a reasonable deadline for payment. This document is particularly important as it can demonstrate reasonable attempts to resolve the matter before court action and may be referenced in subsequent legal proceedings.
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1. Recipient Details: Full name and address of the person/entity owing commission
2. Amount Due: Specific commission amount with calculation breakdown
3. Payment Terms: When and how payment should be made, including bank details or payment methods
4. Legal Basis: Reference to agreement or basis for commission claim
5. Payment Deadline: Clear deadline for payment response
1. Interest Notice: Notice of intention to charge statutory interest under Late Payment of Commercial Debts (Interest) Act 1998
2. Previous Correspondence: Reference to prior attempts to collect the commission
3. Legal Action Warning: Notice of intention to take legal action if payment is not received by the specified deadline
1. Commission Calculation Schedule: Detailed breakdown of commission calculations showing basis for amount claimed
2. Original Agreement Extract: Copy of relevant sections from the original agreement showing commission terms
3. Transaction Records: Supporting documentation showing transactions that generated the commission
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