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The Demand Letter For Settlement Purposes Only is a specialized legal document used in Indian jurisdiction when parties seek to resolve disputes without immediate recourse to litigation. This document serves as a formal yet conciliatory approach to dispute resolution, typically employed after informal attempts at resolution have failed but before initiating formal legal proceedings. It contains detailed claim information, settlement proposals, and relevant legal bases while maintaining privileged status under Indian law. The document is particularly useful in commercial disputes, debt recovery, contract breaches, and service-related disputes, where parties wish to maintain business relationships while seeking resolution. Its 'without prejudice' nature ensures that the content cannot be used as evidence in subsequent litigation if settlement attempts fail, providing a safe space for meaningful negotiation.

1. Header and Date: Includes sender's details, recipient's details, date, and clear marking 'FOR SETTLEMENT PURPOSES ONLY - WITHOUT PREJUDICE'

2. Subject Line: Clear identification of the matter and any relevant reference numbers

3. Opening Statement: Formal introduction stating the purpose of the letter and the parties involved

4. Factual Background: Chronological presentation of relevant facts leading to the current situation

5. Legal Basis: Brief outline of the legal grounds for the claim

6. Claim Amount: Clear statement of the amount demanded with breakdown if applicable

7. Settlement Proposal: Specific terms of the proposed settlement

8. Response Timeline: Clear deadline for response and consequences of non-response

9. Closing Statement: Professional closing with contact information for settlement discussions