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Reclamation Demand Letter for the United Kingdom

Reclamation Demand Letter Template for England and Wales

A Reclamation Demand Letter under English and Welsh law is a formal written demand to reclaim goods that have been supplied but not paid for. This document serves as a crucial step in exercising unpaid seller's rights under the Sale of Goods Act 1979 and related legislation. It typically includes detailed identification of the goods, basis for reclamation, payment history, and specific demands for return or payment.

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What is a Reclamation Demand Letter?

The Reclamation Demand Letter is a critical tool for suppliers seeking to recover goods where payment has not been received. Under English and Welsh law, this document serves as formal notice of the seller's intention to exercise their rights of reclamation. It is particularly important in cases of buyer insolvency or payment default, providing a clear paper trail for potential legal proceedings. The letter must carefully detail the goods in question, establish the legal basis for reclamation, and specify the demanded action, while complying with relevant legislation including the Sale of Goods Act 1979 and insolvency laws.

What sections should be included in a Reclamation Demand Letter?

1. Sender's Details: Full business name, address, and contact information of the party making the reclamation demand

2. Recipient's Details: Full business name, address of the party from whom goods are being reclaimed

3. Goods Description: Specific identification of goods being reclaimed, including quantities, serial numbers if applicable

4. Basis of Claim: Legal basis for reclamation, including reference to relevant contract terms or statutory rights

5. Payment Details: Outstanding amount, payment history, and relevant invoice references

6. Demand Statement: Clear statement of what is being demanded and timeline for compliance

What sections are optional to include in a Reclamation Demand Letter?

1. Interest Claim: Details of interest claimed under Late Payment of Commercial Debts (Interest) Act 1998

2. Legal Consequences: Statement of intended legal action if demand not met

3. ROT Clause Reference: Reference to specific retention of title provisions from original contract

What schedules should be included in a Reclamation Demand Letter?

1. Original Invoice Copies: Copies of relevant invoices proving the debt

2. Delivery Documentation: Proof of delivery of goods being reclaimed

3. Contract Extract: Relevant sections of the original contract, particularly ROT clauses

4. Payment History: Statement showing payment history and outstanding amounts

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

Sale of Goods Act 1979: Key legislation governing unpaid sellers' rights, particularly sections 38-48. Section 43 specifically addresses the right of reclamation in commercial transactions.

Insolvency Act 1986: Critical legislation for understanding reclamation rights when dealing with insolvent buyers, particularly focusing on Retention of Title (ROT) claims.

Limitation Act 1980: Establishes statutory time limits for bringing claims, generally allowing 6 years for contract-based claims.

Commercial Agents Regulations 1993: Regulations implementing EU Council Directive, relevant when the transaction involves commercial agents in the supply chain.

Late Payment of Commercial Debts Act 1998: Legislation governing the right to claim interest on unpaid commercial debts and compensation for late payment.

Romalpa Principles: Common law principles derived from Aluminium Industrie Vaassen BV v Romalpa Aluminium Ltd, establishing key precedents for retention of title claims.

Notice Requirements: Common law principles governing the proper form and service of demand notices to ensure legal validity.

Mitigation Principles: Common law doctrine requiring the claiming party to take reasonable steps to minimize their losses in commercial disputes.

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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