[2 Samples] Demand Letter Breach of Contract

[2 Samples] Demand Letter Breach of Contract


A breach of a contract demand letter is a warning sent to a person or party who has disobeyed the terms of an earlier contract. 

The letter should specify who violated the contract when it was signed, and the specific acts that were taken by the offending party. 

The demand letter aims to either: 
  • ask the offending party to "cure" the problem to comply with the agreement; or
  • assert that the contract is terminated and seeks damages. In either case, before litigation or legal action is taken, the offending party is required to reply to the demand letter by a specific deadline.

A Breach of Contract Demand is what?

A demand for breach of contract informs the other party that the terms of the agreement have been broken. 

The demand letter for breach of contract is a pre-trial court document that may be used in any future legal action. 

Typically, the letter contains demands that allow the parties to work out a solution before taking legal action. 

It will be up to the parties involved to resolve the breach by the terms of the agreement and the violation.

How to Draft a Demand for Breach of Contract?

1. Print This Page's Contract Breach Notice and Save It

The template on this page will be used to notify the Signature Party of a contract that they have breached a contract obligation. 

You can download it in any of the file types listed next to the buttons next to the preview image on this page. 

Find the file version that works best with your software environment, click the appropriate button (or link above), and then adhere to the on-screen instructions to open and save the file.

Related: Landlord Pest Control Letter to Tenant [3 Samples] 

2. The Heading Will Include the Data You Enter

The top of this page contains the first four empty spaces of this template. For most letters, this section—often referred to as the header—should provide specific information. 

Consequently, give the complete name and address of the person who sent this notice or the notice's sender. 

Typically, this refers to a person who has a contract with the recipient and thinks that the recipient has broken the terms of that contract.

The heading of this letter will need two more definitions to be complete. The first of these is the day on the calendar on which this letter is officially deemed to have taken effect. 

On the blank line next to the word "Date," this date should be shown as a calendar month and a calendar day, and on the blank line next to the number "20," it should be shown as a two-digit year. 

The party that broke the relevant agreement will be identified in the final header item. On the blank line after the word "Dear" at the start of the letter, write the recipient's entire name.

3. You must provide documentation of relevant facts.

This letter will include the necessary language to tell the recipient that failure to abide by the terms of the agreement established with the sender of the letter is their fault. However, you must provide specific information so that the recipient can relate to it. 

First, identify the contract that the Recipient violated by writing its name and/or file number on the empty space following the words "...Titled" and before the phrase "...And Dated." 

There needs to be more clarification of the contract that was broken in the introduction paragraph. The effective date or signature date of the breached contract should be reported on the next two blank lines. 

Find the words "...Agreement Due To The Following Actions" now. 

The specifics of what the Recipient did to violate the agreement held with the Sender must be stated in the space immediately following this clause. 

For example, the recipient might have committed fraud or caused property damage. There will also be some information needed for the third paragraph. 

Here, you must make sure to include the name of the state whose judicial system is in charge of the breached contract.

Place this in the blank space that follows "...State Of." Most of the time, it would be deemed extremely prudent to give the Recipient a deadline to get in touch with the Sender and fix the agreement violation. 

This needs to be said in a way that makes it clear to the recipient what will happen if they don't take this letter seriously.

4. This Document's Sender Must Sign Their Name.

The recipient of this notice is required to take it seriously. As a result, the sender's signature should go in the space directly beneath the words "Sincerely" at the end of this letter. 

This action is seen as evidence of the Sender's intention to follow up on the information included in this document.

1. Sample demand letter breach of contract

Greetings, Mr. [Name]

[Your Company Name] has completed all of its obligations under the terms of the Agreement as of [insert execution date] by [explain how the obligations were completed]. Despite this and numerous requests, [Addressee Company Name] has not made the required payment of $[outstanding amount] and is in violation of the Agreement. 

We will file a lawsuit against [Addressee Company Name] asserting these claims, but we prefer to come to an amicable agreement without resorting to open courtroom proceedings.

This letter's contents are entirely confidential and are only meant to be used to reach a settlement. They are not permitted to be used in any other contexts or in litigation unrelated to this case. According to [Civil Regulation or Statute], this is the case. [Your Company Name] retains complete ownership of the matters covered by this Agreement.

The [Addressee Company Name has a legal obligation to preserve and maintain all information, materials, and documents in any firm that may even appear remotely related to the agreement breach to comply with legal requirements.

[Insert a list of relevant issues here] [Addressee Company Name] should maintain all records, information, and materials relating thereto.

We kindly request that you respond to this letter by the closing of business on [date], at the latest. We have the right to take any legal action up to and including formal litigation if by this point we have not heard from [Addressee Company Name].

Sincere thanks

Company XYZ

2. Breach of contract letter to contractor

Greetings!

Your business, XYZ Corp, signed a contract with our business, Sullivan Corp [your business], on [date]. Attached to this document is a genuine and accurate copy of the signed contract.

Legal standing

The plaintiff must establish four elements to succeed in a cause of action for breach of contract: (1) the contract; (2) the plaintiff's performance of the contract or an explanation for nonperformance; (3) the defendant's breach; and (4) the harm suffered by the plaintiff. Hartley (2014) 224 Cal.App.4th 1182, 1186 Richman

The fact that the defendant's breach resulted in the plaintiff's injury is implicit in the element of damage. Farmers Group, Inc. v. Troyk, 2009 Cal. App. 4th 171, 1305, 1352.

The other party may be released from its obligation to perform under the contract when one party's failure to uphold a contractual obligation amounts to a material breach of the agreement. Usually, it is a matter of fact whether a violation of an obligation qualifies as a serious breach, which would exclude the other party from performing.

It depends on "the importance or seriousness thereof and the probability of the injured party getting substantial performance" to determine whether a partial breach of a contract qualifies as material. It is generally true that a material breach of one part of a contract results in a material breach of the entire contract. (Inner citations omitted. Brown, supra, 192 Cal.App.4th at pp. 277–278.)

A breach of a contract is an unjustified or unexcused failure to carry out the terms of the agreement. Contracts, Section 847 (1 Witkin, Summary of California Law, 10th ed., 2005), original italics, internal citations omitted. Although negligent performance can also constitute a breach and give rise to alternative contract and tort actions, breaches typically result from intentional acts. (Ibid.)

Analysis

Here, the essential clauses of the agreement demand the following performance from Sullivan Corp.
  • [Copy/paste the essential clauses of the contract]
  • [Copy/paste the essential clauses of the contract]
  • [Copy/paste the essential clauses of the contract]
  • [Copy/paste the essential clauses of the contract]

The deadline for Sullivan Corp.'s performance was [date]. Sullivan fulfilled all of the essential obligations outlined in the contract or almost all of them.

[Or, Sullivan was exempt from having to [describe actions the plaintiff did not do, such as obtaining a guarantor on the contract.]

The following performance by XYZ is required under the material provisions of the contract:
  • [Copy/paste the essential clauses of the contract]
  • [Copy/paste the essential clauses of the contract]
  • [Copy/paste the essential Clauses of the contract]
  • [Copy/paste the essential clauses of the contract]

The deadline for XYZ's performance was [date].

As a result of XYZ's failure to satisfy an obligation under the contract, the following are not fulfilled:
  • [Copy/paste the essential clauses of the contract]
  • [Copy/paste the essential clauses of the contract]
  • [Copy/paste the essential clauses of the contract]

That injury was done to Sullivan. The damages are computed using the following formula:

Determine the financial harm.

that Sullivan Corp's damage was significantly impacted by XYZ Corp's breach of contract. In contract matters, like in tort cases, it is necessary for the damages to be directly related to the defendant's violation and for their cause to be at least proximally certain. An object that plays a significant role in causing loss or harm is said to be the proximate cause. US Ecology Inc., supra, 129 Cal.App.4th at p. 909.

Sincere thanks

ABC Company

[Signature]
Related: [4 Samples] Letter Notifying Patients Physician Leaving Practice
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