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Legal Demand Payment for the United Kingdom

Legal Demand Payment Template for England and Wales

A Legal Demand Payment is a formal document used under English and Welsh law to demand payment of an outstanding debt. It serves as a final notice before legal proceedings and must comply with specific requirements under the Civil Procedure Rules. The document outlines the debt amount, payment terms, and consequences of non-payment, while potentially including statutory interest claims under the Late Payment of Commercial Debts (Interest) Act 1998.

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What is a Legal Demand Payment?

A Legal Demand Payment document is utilized when formal attempts to recover a debt are required under English and Welsh law. This document typically follows unsuccessful informal payment requests and precedes legal action. It must contain specific information including the debt amount, payment deadline, and consequences of non-payment. The document should comply with pre-action protocols and may include statutory interest claims. Legal Demand Payment letters are crucial in establishing a clear record of attempted debt recovery before proceeding to court action.

What sections should be included in a Legal Demand Payment?

1. Sender Details: Full legal name and address of the demanding party

2. Recipient Details: Full legal name and address of the debtor

3. Debt Details: Precise amount owed and origin of the debt

4. Payment Terms: Deadline for payment and acceptable payment methods

5. Legal Basis: Reference to contract or basis for the debt

What sections are optional to include in a Legal Demand Payment?

1. Interest Calculation: Details of statutory or contractual interest applicable to the debt

2. Previous Communications: Reference to prior payment requests and correspondence history

3. Legal Consequences: Warning of potential legal action if payment is not received

What schedules should be included in a Legal Demand Payment?

1. Statement of Account: Detailed breakdown of the debt amount including principal, interest, and any penalties

2. Payment History: Record of previous payments made and attempts to collect the debt

3. Supporting Documents: Copies of relevant invoices, contracts, or correspondence proving the debt

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Demand Letter

Sector

Marketing

Cost

Free to use
Relevant legal definitions




















Clauses















Industries

Late Payment of Commercial Debts (Interest) Act 1998: Key legislation governing statutory rights to claim interest on late payments, applicable interest rates, and compensation for late payment in commercial transactions

Limitation Act 1980: Establishes time limits for bringing claims (generally 6 years for simple contracts) and ensures the demand is within the statutory limitation period

Supply of Goods and Services Act 1982: Fundamental contract law principles governing the supply of goods and services, including terms implied by law

Consumer Rights Act 2015: Relevant when dealing with consumer debt, establishing consumer rights and business obligations in contracts

Civil Procedure Rules (CPR): Sets out pre-action protocols, requirements before court proceedings, and format/content requirements for legal demands

Companies Act 2006: Governs proper identification of companies and service requirements when dealing with corporate entities

Insolvency Act 1986: Addresses considerations of debtor's solvency status and statutory demands requirements in insolvency situations

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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