The term “mise en demeure” originates from a Latin proverb meaning “delay.” Indeed, a demand letter addresses a debtor’s failure to fulfill their obligation by its deadline. Essentially, a demand letter is a warning issued to the debtor, requesting them to fulfill the obligation within a specified timeframe.
If the debtor fails to meet the deadline, legal proceedings will be initiated. In Quebec, a demand letter simply represents the formal document by which an individual is asked to respect their obligations. This letter is used as a primary means to resolve a dispute and avoid recourse to a court.
In this letter, it is important to state the fault attributed to the person concerned and to indicate how they can quickly remedy the situation.
When should a demand letter be issued?
First, it is important to know that a demand letter is not always mandatory. Indeed, a demand letter is required in contractual matters when one of the parties fails to meet their obligations. In certain situations, the law explicitly provides for the obligation to send a demand letter. This is the case for the cancellation of a property sale, for victims of a hidden defect, or in disputes with a municipality. Sometimes, it is also possible for the law to place a person directly in default, making a paper letter unnecessary. This is known in legal jargon as “being in default by operation of law.” This can occur in urgent cases where quick action is required, when explicitly stipulated in the contract, or when the person with whom you had a contract has done something they had committed not to do.
Finally, it is important to issue the demand letter as quickly as possible, as the date of sending the letter will coincide with the date from which interest is calculated if the claim is brought before the courts. However, you must always ensure that you respect the limitation periods for your claim before initiating such proceedings. Moreover, a demand letter does not interrupt limitation periods for initiating a claim.
What to do if you receive a demand letter?
Generally, when someone sends you a demand letter, it is because you are in default, and that person wants to give you the opportunity to resolve the conflict before going to court. Thus, several options may be available to you when you receive this letter.
The most common approach is to simply resolve the dispute and fulfill your obligation within the required timeframe. This will help you avoid potential lawsuits and resolve any possible conflict.
The other option available to you, and certainly the most recommended, is to consult a lawyer specializing in demand letters to discuss and negotiate with the person who sent you the letter. This could allow you to resolve the conflict through mediation. You also have the option to refuse the demand letter and not comply with its contents, but you would then expose yourself to potential legal proceedings.
Seek assistance in case of a demand letter
In conclusion, a demand letter is an effective means you can use to avoid going to court in case of a dispute. It can sometimes resolve the disagreement amicably and promptly.
Whether you have received a demand letter or wish to draft one, our lawyers are here to assist you, particularly in evaluating your chances of success in such a claim or initiating negotiation processes before the case becomes litigious.
