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Demand For Money Owed

A demand for money owed is an official demand for payment under a contract or loan agreement.


  • Demanding a contractor perform some agreed-upon work
  • Demanding payment or other performance under a valid contract


When people and businesses enter into contracts with others, they have every reason to believe that the work will be performed as requested. In fact, parties to a contract have a legal right to expect their co-signatories to act in good faith and make every reasonable effort to make payments, deliver goods, or perform services as agreed. When this is not the case, a demand letter can be a helpful way to pursue your rights under a contractual agreement.

Demand for money owed letters are commonly used in contract disputes and commercial cases involving an alleged failure to pay for work performed or otherwise due. Demand for money owed letters are also common in the financial sector, as debt collectors commonly use them to formalize a request for payment or some other action required on a delinquent account. Sending this letter can be a good way to jumpstart negotiations with someone you believe owes you money.

Demand for money owed letters are helpful to prove your case in the event that the dispute ends up in court, so these documents are a helpful way to document conflict between contractual parties.

If you are involved in a contractual dispute where you believe that someone is not living up to their end of the bargain, consider using this demand for money owed letter to formalize your requests for payment or performance.