- It sets out the claim, what you want, a deadline and what happens next if it is ignored.
- A response window of 7 to 14 days is common. No fixed period is set by law.
- Before suing, you are expected to offer an amicable resolution. A letter of demand usually does this.
- If it is ignored, the next step is usually a claim in the tribunals or the courts.
What it is for
A letter of demand is a formal written request to someone who owes you money or has broken an agreement, asking them to put it right. It does three jobs: it tells them clearly what the problem is, gives them a chance to resolve it without court, and creates a record you can rely on later if they don't.
On its own it is not legally binding. It is a step before legal action, not legal action itself. It is also different from a statutory demand, which is a formal insolvency document with its own rules (see our guide on statutory demands).
What it should say
A clear letter of demand usually includes:
- the names and contact details of both parties
- a short summary of the facts and of the claim, with dates
- references to the contract, invoices or other documents relied on
- exactly what you are asking for: a sum of money, or something to be done
- a deadline to respond, commonly 7 to 14 days
- what you will do if they don't, for example start court proceedings
It should only ask for what the law would let you recover, and should not contain threats or offensive language.
Do you have to send one?
There is no strict rule that a letter of demand must come before a lawsuit. However, since the Rules of Court 2021 took effect in April 2022, parties are expected to consider resolving a dispute amicably, and to make an offer of amicable resolution before starting a court case unless there are good reasons not to. A letter of demand is the usual way of making that offer.
Skipping this step can be costly. A party who does not try to resolve the matter amicably may be penalised on legal costs, even if it wins.
If the letter is ignored
Ignoring a letter of demand is common. If the deadline passes without payment or a satisfactory reply, the next step is usually to bring a claim: in the Small Claims Tribunals for smaller consumer-type disputes, or in the courts. A lawyer can advise which route fits your claim and whether the debtor is worth pursuing.
This article is general information on Singapore law and is not legal advice. Rules and agency policies change, and every situation is different. For advice on your own circumstances, speak with one of our lawyers.
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