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Late Payment Demand Letter for Singapore

Late Payment Demand Letter Template for Singapore

A Late Payment Demand Letter under Singapore law is a formal written communication sent by a creditor to a debtor demanding payment of an overdue amount. The document typically includes details of the outstanding debt, payment history, and a clear deadline for payment. It serves as a crucial step in debt recovery and can be used as evidence in subsequent legal proceedings in Singapore courts if payment remains outstanding.

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Late Payment Demand Letter

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What is a Late Payment Demand Letter?

A Late Payment Demand Letter is a crucial document in Singapore's commercial landscape, used when payment obligations under a contract remain unfulfilled beyond the agreed terms. This document serves as a formal notification and demand for payment, typically sent after informal reminders have been unsuccessful. The letter must comply with Singapore's legal requirements and should clearly state the outstanding amount, payment history, and consequences of continued non-payment. It often precedes legal action and can be used to demonstrate reasonable attempts to recover the debt before pursuing court proceedings.

What sections should be included in a Late Payment Demand Letter?

1. Sender Details: Full name, address, and contact information of the creditor

2. Recipient Details: Full name, address of the debtor

3. Date: Current date of the demand letter

4. Outstanding Amount: Clear statement of the amount owed

5. Payment History: Reference to original payment due date and any partial payments

6. Demand Statement: Clear demand for payment with specific deadline

7. Payment Instructions: How and where to make the payment

What sections are optional to include in a Late Payment Demand Letter?

1. Interest Calculation: Section detailing interest charges on the late payment, including calculation method and period

2. Legal Action Warning: Warning about potential legal consequences if payment is not received by the specified deadline

3. Payment Plan Option: Details of possible installment payment arrangements if applicable

What schedules should be included in a Late Payment Demand Letter?

1. Original Invoice: Copy of the unpaid invoice(s) referenced in the demand letter

2. Statement of Account: Detailed breakdown of all amounts owed and any payments made to date

3. Contract Reference: Relevant excerpts from the original contract regarding payment terms and conditions

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Document Type

Demand Letter

Cost

Free to use
Relevant legal definitions




















Clauses















Industries

Limitation Act 1959: Establishes time limits for civil claims, generally 6 years for contractual claims. Essential to verify that the debt claim falls within the limitation period.

Contract Act (Cap. 53): Primary legislation governing contract law in Singapore, along with common law principles. Ensures the underlying contract is valid and enforceable.

Interest Rate Regulations: While late payment interest rates are not specifically regulated in Singapore, reference should be made to contract terms for agreed rates. Courts generally accept reasonable commercial rates.

Companies Act: Relevant when dealing with companies, covering requirements for proper company identification and ensuring the correct legal entity is addressed.

Consumer Protection (Fair Trading) Act: Applies when dealing with consumer debtors, ensuring fair trading practices are followed in debt collection.

Personal Data Protection Act 2012: Governs the proper handling of personal information and privacy considerations in correspondence during debt collection.

Supreme Court of Judicature Act: Covers jurisdictional considerations, particularly relevant if legal action is contemplated following the demand letter.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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