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Payment Demand Letter Breach Of Contract Template for England and Wales

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Key Requirements PROMPT example:

Payment Demand Letter Breach Of Contract

"I need to draft a Payment Demand Letter Breach Of Contract to recover £25,000 from a construction contractor who has failed to complete agreed works but received full payment in advance, with a deadline for response by March 15, 2025."

Document background
The Payment Demand Letter Breach Of Contract is a critical document in the debt recovery process under English and Welsh jurisdiction. It is typically used when one party has failed to make contractually obligated payments despite previous informal requests. The document serves multiple purposes: it formally documents the breach, demands specific remedy, and satisfies pre-action protocol requirements before potential litigation. The letter should include precise details of the original contract, the nature of the breach, the amount owed (including any interest and costs), and a reasonable deadline for payment. It often represents a final opportunity for the debtor to settle before legal proceedings commence.
Suggested Sections

1. Recipient Details: Full name, address, and reference details of the recipient

2. Contract Reference: Specific details of the contract being breached, including date and nature of agreement

3. Payment Details: Amount owed, including breakdown if applicable, with specific figures and payment terms

4. Breach Description: Clear description of how the contract was breached, including relevant dates and circumstances

5. Payment Demand: Formal demand for payment with specific deadline and payment instructions

Optional Sections

1. Interest Calculation: Details of statutory interest being claimed under the Late Payment of Commercial Debts (Interest) Act 1998

2. Previous Communications: Summary of prior payment requests and attempts to resolve the matter

3. Legal Consequences: Warning of potential legal action if payment is not received by the specified deadline

Suggested Schedules

1. Original Contract: Copy of the original contract or agreement being enforced

2. Invoice History: Copies of all relevant invoices and payment history documentation

3. Communication Log: Chronological record of all previous payment requests and responses

4. Interest Calculations Schedule: Detailed breakdown of interest calculations if statutory interest is being claimed

Authors

Alex Denne

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

Relevant legal definitions


















Clauses















Industries

Late Payment of Commercial Debts (Interest) Act 1998: Key legislation governing statutory rights to claim interest on late commercial payments, including applicable interest rates and the right to claim reasonable costs of debt recovery

Limitation Act 1980: Establishes time limits for bringing claims (generally 6 years for simple contracts) and ensures claims are within statutory limitation periods

Contracts (Rights of Third Parties) Act 1999: Determines who has the right to enforce the contract and the rights of third parties in contractual matters

Civil Procedure Rules (CPR): Sets out pre-action conduct requirements, protocol for debt claims, and requirements for formal demands before litigation

Supply of Goods and Services Act 1982: Governs contracts involving goods or services, including implied terms and conditions

Common Law Principles: Encompasses requirements for valid contract formation, principles of breach of contract, calculation of damages, and mitigation of loss

Consumer Rights Act 2015: Applicable when dealing with consumer contracts rather than business-to-business transactions

European Communities (Protection of Trading Interests) Act 1980: Relevant for contracts with international elements or cross-border implications

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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