The 7 Day Demand Letter is a critical pre-litigation document used in Malaysian business and legal practice when attempting to recover outstanding debts. It serves as a final formal notice before initiating legal proceedings, typically issued after previous payment requests have been unsuccessful. The document must comply with Malaysian legal requirements and clearly state the debt amount, its origin, payment deadline, and consequences of non-payment. It's an essential tool in debt recovery that demonstrates the creditor's serious intention to pursue legal action while giving the debtor one last opportunity to settle the matter amicably. The letter often references relevant contracts, includes interest calculations if applicable, and provides specific payment instructions.
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1. Letterhead and Date: Law firm's letterhead (if applicable) and current date
2. Recipient Details: Full name and address of the debtor, including any relevant registration numbers for companies
3. Reference Line: Clear subject line indicating this is a demand letter and any relevant reference numbers
4. Debt Details: Specific amount owed, origin of the debt, and date it was incurred
5. Legal Basis: Reference to the underlying contract or basis for the debt
6. Demand Statement: Clear statement demanding payment within 7 days
7. Payment Instructions: Specific payment methods and account details for settlement
8. Legal Consequences: Statement of intended legal action if payment is not received within the specified timeframe
9. Closing: Standard closing, signature block, and law firm details if applicable
1. Interest Calculation: Include when claiming interest on the outstanding amount, showing calculation method and periods
2. Previous Communications: Reference to previous payment requests or relevant correspondence when there has been prior contact
3. Security Details: Include when the debt is secured against specific assets or guarantees
4. Without Prejudice: Include this marking when the letter contains settlement offers or negotiations
5. Corporate Authority: Include for corporate debtors, referencing the person responsible for payment
1. Statement of Account: Detailed breakdown of the debt amount, including any partial payments made
2. Original Contract: Copy of the contract or agreement that gave rise to the debt
3. Payment History: Record of any previous payments or payment attempts
4. Correspondence History: Copies of relevant previous communications regarding the debt
5. Interest Calculation Schedule: Detailed calculation of interest charges if applicable
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