The Legal Letter of Demand is a critical document in Hong Kong's commercial and civil legal framework, typically used when informal attempts to resolve a payment or performance issue have failed. It serves as the final formal communication before initiating legal proceedings through the Hong Kong courts. The document must be drafted in compliance with Hong Kong law and should clearly state the basis of the claim, the amount owed or action required, and the deadline for compliance. The Letter of Demand is widely used across various industries and can address matters ranging from simple debt collection to complex contractual disputes. It should include sufficient details about the claim, any applicable interest calculations, and a clear statement of the consequences of non-compliance. While not strictly required by law, sending a Letter of Demand is considered best practice in Hong Kong and can demonstrate reasonableness to the court if litigation becomes necessary.
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1. Sender and Recipient Details: Full names and addresses of both parties, including registered office address if a company
2. Date: Current date of the letter
3. Subject Line: Clear indication that this is a Letter of Demand and reference to the matter
4. Debt/Claim Details: Specific details of the amount owed or claim, including the original agreement or circumstance that led to the debt
5. Payment History: Summary of any previous payments made and current outstanding amount
6. Interest Calculation: Details of any interest being claimed and calculation method
7. Demand Statement: Clear statement of what is being demanded (payment, action, etc.)
8. Payment Terms: Specific deadline for payment and acceptable payment methods
9. Legal Action Warning: Statement of intention to take legal action if demand is not met
10. Closing: Formal closing, signature block, and law firm details if applicable
1. Without Prejudice Statement: Include when the letter is part of settlement negotiations
2. Previous Correspondence Reference: Include when there have been prior attempts to resolve the matter
3. Personal Guarantee Details: Include when claiming against a personal guarantor
4. Statutory Demand Warning: Include when dealing with a company and considering winding-up proceedings
5. Reservation of Rights: Include to preserve additional legal rights not specifically mentioned
1. Schedule A - Original Agreement: Copy of the contract or agreement that forms the basis of the claim
2. Schedule B - Statement of Account: Detailed breakdown of the debt, including principal, interest, and any charges
3. Schedule C - Correspondence History: Copies of relevant previous correspondence regarding the debt
4. Schedule D - Supporting Documents: Any relevant invoices, delivery notes, or other evidence supporting the claim
5. Schedule E - Interest Calculations: Detailed calculations of interest claimed if applicable
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