A Demand Letter For Breach of Contract is a critical business document used in the Philippines when one party needs to formally address another party's failure to fulfill contractual obligations. This document, governed by the Civil Code of the Philippines, serves as a formal notice that typically precedes legal action. It should be used when informal attempts to resolve contractual disputes have failed and the aggrieved party needs to establish a formal record of their demands. The letter must carefully detail the specific breaches, reference relevant contract provisions, outline damages or losses incurred, and provide clear demands with deadlines for compliance. It often serves as a crucial piece of evidence in subsequent legal proceedings and demonstrates the sender's attempt to resolve the dispute before pursuing litigation. The document must comply with Philippine legal requirements regarding notice and demand, particularly under Articles 1169 and 1170 of the Civil Code.
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1. Sender's Details: Complete name, address, and contact information of the party sending the demand letter
2. Date: Current date of the demand letter
3. Recipient's Details: Complete name, address, and contact information of the party in breach
4. Subject Line: Clear indication that this is a formal demand letter regarding breach of contract
5. Contract Reference: Specific details of the contract including date, parties, and subject matter
6. Breach Description: Detailed description of how the contract was breached, including specific clauses violated and timeline of events
7. Impact Statement: Description of damages or losses incurred due to the breach
8. Demand Statement: Clear statement of what is being demanded (payment, specific performance, etc.) with exact amounts if applicable
9. Response Timeline: Specific deadline for the recipient to respond or comply with the demands
10. Legal Consequences: Statement of intended legal action if demands are not met within the specified timeline
1. Previous Communications: Reference to prior attempts to resolve the issue, used when there has been previous correspondence
2. Alternative Resolution Options: Proposed alternative dispute resolution methods, included when willing to negotiate or mediate
3. Interest Calculation: Detailed calculation of interest on monetary claims, included when claiming interest on unpaid amounts
4. Without Prejudice Statement: Legal disclaimer preserving rights, included in cases where negotiation might be ongoing
5. Cc Recipients: List of other parties receiving copies, used when relevant third parties need to be informed
1. Supporting Documentation: Copies of relevant contract, amendments, and related documents
2. Evidence of Breach: Documentation proving the breach (emails, photos, reports, etc.)
3. Damage Calculation: Detailed breakdown of claimed damages and supporting evidence
4. Communication Log: Timeline of relevant communications and attempts to resolve the issue
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