The Compensation Demand Letter is a critical legal instrument in Hong Kong's civil justice system, serving as a formal prerequisite to potential litigation. It is typically used when seeking remedies for various claims, including contract breaches, personal injuries, property damage, or professional negligence. The document must be drafted in compliance with Hong Kong's legal requirements and should clearly articulate the basis of the claim, quantum of damages, and demanded compensation. This formal communication often represents a final attempt at settlement before initiating legal proceedings and must include sufficient detail to enable the recipient to assess the claim's validity. The Compensation Demand Letter should be precise, professional, and contain all necessary supporting documentation to substantiate the claim.
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1. Sender and Recipient Details: Full names and addresses of both parties, including any reference numbers
2. Date: Current date of the letter
3. Subject Line: Clear identification of the matter as a compensation demand
4. Incident Details: Clear description of the incident or breach that led to the claim, including relevant dates and locations
5. Legal Basis: Statement of the legal grounds for the claim
6. Damages/Loss Details: Itemized breakdown of all losses and damages being claimed
7. Compensation Amount: Total amount demanded, including any interest calculations
8. Payment Terms: Specific payment deadline and acceptable payment methods
9. Legal Action Warning: Statement of intention to take legal action if demand is not met
10. Response Deadline: Clear deadline for response to the demand
11. Closing: Professional closing and signature block
1. Previous Correspondence: Reference to any previous attempts to resolve the matter, used when there has been prior communication
2. Without Prejudice: This marking when the letter includes settlement proposals or negotiations
3. Third Party Details: Information about any third parties involved, such as insurers or witnesses
4. Interest Calculation: Detailed breakdown of interest calculations, used for longer-standing claims
5. Mitigation Efforts: Description of steps taken to minimize losses, important in larger claims
6. Legal Authority Citations: References to specific laws or cases supporting the claim, used in more complex matters
1. Schedule of Losses: Detailed itemization of all losses and damages being claimed
2. Schedule of Supporting Documents: List of all documents attached to support the claim
3. Photographic Evidence: Photographs documenting damage or injuries, if applicable
4. Medical Reports: For personal injury claims, copies of relevant medical documentation
5. Expert Reports: Any professional assessments or valuations supporting the claim
6. Correspondence Log: Timeline of previous communications regarding the matter
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