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January 29, 2021 Construction

What You Need to Know About Breach of Contract Demand Letters

A breach of contract demand letter is used to identify a certain party that has not performed their duties under a contract to which they had previously agreed. A breach of contract demand letter should not only outline the party that breached the contract, but also the date of the agreement and the specific actions the violating party took or failed to take to put them in breach. 

A breach of contract demand letter serves two purposes. The first is to ask the offending party to remedy the situation to bring them back in compliance with the agreement. The second purpose is to claim that the contract is terminated and that the wronged party is seeking damages. In both cases, the offending party must respond to the demand letter before a certain date, or litigation will occur.

What to Include in a Breach of Contract Demand Letter

A breach of contract demand letter is an important document that should always include certain information. The most important information to include in a letter is as follows:

  • Information included in the initial contract: While not every part of the original contract must be included in a breach of contract demand letter, there are some important parts to include. You should include every section of the contract that was breached and list them in order from the most egregious to the least.
  • A description of the breach: You should also include a detailed description of the breach. Some common types of breaches include failing to pay or provide goods as described in the initial contract.
  • Potential remedies: When it is possible to do so, a breach of contract demand letter should also include a possible remedy to the issue. Potential remedies can include a termination of the contract or a provision for payment. If the initial contract outlined remedies, these can be included in the demand letter, as well.

Your New Jersey commercial litigation attorney will ensure that all necessary elements are included in your breach of contract demand letter.

How to Serve Demand Letters

Unlike complaints that are filed with the courts, you do not have to use a process server to serve your breach of contract demand letter. You have several options when serving a demand letter, but how you do it is still important. 

Sending your demand letter by certified mail is often the best way. Certified mail requires a signature of the recipient and proof of delivery. This becomes important in the future if you must prove that you sent the demand letter. Using first class mail or a courier service is another effective way to send the demand letter.

When Legal Action is Necessary

Unfortunately, not all parties that are in breach of contract will attempt to resolve the issue. They may disagree with the remedies you have provided, or simply refuse to take any action at all, including failing to respond to the demand letter. When this is the case, litigation is typically necessary to pursue the damages or other remedies you seek. If you have not been working with a New Jersey commercial litigation lawyer, it is crucial to speak to one before going into litigation, and before even telling the offending party that you intend to take further legal action.

The Statute of Limitations on Breach of Contract Claims

It is critical to your case that you send a demand letter as soon as there has been a breach of contract. Like all civil actions in New Jersey, a claim for breach of contract is governed by a statute of limitations. This is the amount of time you have to file your claim. In New Jersey, the statute of limitations on breach of contract claims is six years from the date of the breach. If you do not file your claim within this time period, you will likely forfeit your right to pursue damages or other remedies from the offending parties.

Our New Jersey Commercial Litigation Lawyers Can Help With Your Demand Letter

If someone has breached a contract you entered into, your demand letter sets the stage for how the rest of your case will proceed. Do not leave it to chance. At Snellings Law, our knowledgeable commercial litigation lawyers in New Jersey can help. After reviewing the facts of your case, we will draft a strong demand letter that includes all pertinent information and if necessary, represent you during litigation. Call us today at (973) 265-6100 or fill out our online form to schedule a meeting with one of our attorneys.