A Counter Demand Letter is utilized in New Zealand when a party who has received a demand letter believes they have valid claims against the original demanding party. This document serves multiple purposes: it responds to the initial demand, presents a counter-claim, and establishes a formal record of the dispute. The letter must comply with New Zealand's legal framework, including the Contract and Commercial Law Act 2017 and Fair Trading Act 1986. It typically includes details of the original demand, grounds for dispute, counter-claim specifics, supporting evidence, and proposed resolution terms. This document is crucial in commercial disputes, often serving as a precursor to formal legal proceedings if the matter cannot be resolved through negotiation.
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1. Recipient Details and Date: Full name, address, and date of the letter following proper business letter format
2. Reference to Original Demand: Clear identification of the original demand letter received, including its date and key claims
3. Dispute of Original Claim: Formal rejection or dispute of the original demand with brief reasoning
4. Counter Demand Statement: Clear statement of your counter demand, including specific amount or action required
5. Factual Background: Relevant facts and chronology supporting your counter demand
6. Legal Basis: Brief outline of legal grounds supporting your position
7. Payment/Resolution Terms: Specific terms for payment or resolution, including deadlines
8. Conclusion and Next Steps: Clear statement of expected response and consequences of non-compliance
1. Without Prejudice Statement: Include when the letter is part of settlement negotiations and should not be used in court proceedings
2. Previous Correspondence Reference: Include when there has been a history of relevant correspondence beyond the initial demand
3. Third Party Rights: Include when the counter demand involves rights or obligations of third parties
4. Reservation of Rights: Include when you want to explicitly reserve the right to make additional claims or take further legal action
5. Alternative Dispute Resolution: Include when proposing mediation or other forms of dispute resolution
1. Evidence Schedule: Copies of relevant documents, correspondence, or evidence supporting your counter demand
2. Financial Schedule: Detailed breakdown of amounts claimed, including calculations and supporting documentation
3. Chronology of Events: Timeline of relevant events if the matter is complex
4. Copy of Original Demand: Attachment of the original demand letter being responded to
5. Supporting Legal Citations: References to relevant legislation or case law supporting your position
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