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Compensation Demand Letter

Compensation Demand Letter Template for Hong Kong

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Key Requirements PROMPT example:

Compensation Demand Letter

"I need a Compensation Demand Letter under Hong Kong law for a construction contract breach that occurred on January 15, 2025, claiming HKD 2.5 million in damages from ABC Construction Limited for project delays and defective work."

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Document background
The Compensation Demand Letter is a critical legal instrument in Hong Kong's civil justice system, serving as a formal prerequisite to potential litigation. It is typically used when seeking remedies for various claims, including contract breaches, personal injuries, property damage, or professional negligence. The document must be drafted in compliance with Hong Kong's legal requirements and should clearly articulate the basis of the claim, quantum of damages, and demanded compensation. This formal communication often represents a final attempt at settlement before initiating legal proceedings and must include sufficient detail to enable the recipient to assess the claim's validity. The Compensation Demand Letter should be precise, professional, and contain all necessary supporting documentation to substantiate the claim.
Suggested Sections

1. Sender and Recipient Details: Full names and addresses of both parties, including any reference numbers

2. Date: Current date of the letter

3. Subject Line: Clear identification of the matter as a compensation demand

4. Incident Details: Clear description of the incident or breach that led to the claim, including relevant dates and locations

5. Legal Basis: Statement of the legal grounds for the claim

6. Damages/Loss Details: Itemized breakdown of all losses and damages being claimed

7. Compensation Amount: Total amount demanded, including any interest calculations

8. Payment Terms: Specific payment deadline and acceptable payment methods

9. Legal Action Warning: Statement of intention to take legal action if demand is not met

10. Response Deadline: Clear deadline for response to the demand

11. Closing: Professional closing and signature block

Optional Sections

1. Previous Correspondence: Reference to any previous attempts to resolve the matter, used when there has been prior communication

2. Without Prejudice: This marking when the letter includes settlement proposals or negotiations

3. Third Party Details: Information about any third parties involved, such as insurers or witnesses

4. Interest Calculation: Detailed breakdown of interest calculations, used for longer-standing claims

5. Mitigation Efforts: Description of steps taken to minimize losses, important in larger claims

6. Legal Authority Citations: References to specific laws or cases supporting the claim, used in more complex matters

Suggested Schedules

1. Schedule of Losses: Detailed itemization of all losses and damages being claimed

2. Schedule of Supporting Documents: List of all documents attached to support the claim

3. Photographic Evidence: Photographs documenting damage or injuries, if applicable

4. Medical Reports: For personal injury claims, copies of relevant medical documentation

5. Expert Reports: Any professional assessments or valuations supporting the claim

6. Correspondence Log: Timeline of previous communications regarding the matter

Authors

Alex Denne

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

alex.den.21@genieai.co
Relevant legal definitions

























Clauses




















Relevant Industries

Legal Services

Insurance

Banking and Financial Services

Real Estate and Property

Construction

Manufacturing

Retail and Consumer

Healthcare

Transportation and Logistics

Professional Services

Education

Hospitality

Technology

Energy and Utilities

Relevant Teams

Legal

Risk Management

Compliance

Operations

Finance

Claims Processing

Customer Relations

Human Resources

Property Management

Project Management

Quality Assurance

Contract Administration

Insurance

Dispute Resolution

Relevant Roles

Legal Counsel

Claims Manager

Risk Manager

Compliance Officer

Contract Administrator

Business Development Manager

Operations Manager

Financial Controller

Company Secretary

Insurance Claims Handler

Property Manager

Project Manager

Human Resources Director

Customer Service Manager

Quality Assurance Manager

Industries








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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