Demand Letter Without Prejudice Template for England and Wales

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Key Requirements PROMPT example:

Demand Letter Without Prejudice

"I need to draft a Without Prejudice Demand Letter for an unpaid invoice of £75,000 to a manufacturing supplier, with a 14-day payment deadline and the option for a settlement at 90% if paid by March 15, 2025."

Document background
A Without Prejudice Demand Letter is a crucial document in debt recovery proceedings under English and Welsh law. It is typically used when previous attempts to secure payment have failed and before initiating formal legal proceedings. The 'without prejudice' designation prevents the contents of the letter from being used as evidence in court, encouraging open settlement discussions. This document should clearly state the amount owed, payment terms, and consequences of non-payment while maintaining a professional and non-threatening tone. It represents a critical step in the pre-action protocol required by English courts.
Suggested Sections

1. Header: 'Without Prejudice' clearly marked at top of letter

2. Recipient Details: Full name and address of the recipient

3. Debt Details: Clear statement of amount owed and origin of debt

4. Payment History: Summary of previous payment attempts or correspondence

5. Demand: Clear statement of payment required and deadline

6. Consequences: Statement of intended action if demand not met

Optional Sections

1. Interest Calculation: Include when claiming statutory or contractual interest

2. Settlement Offer: Include when proposing specific settlement terms

3. Previous Correspondence: Reference when multiple attempts at contact have been made

Suggested Schedules

1. Payment History Schedule: Detailed breakdown of payments and dates

2. Interest Calculations: Detailed breakdown of interest claimed

3. Supporting Documents: Copies of relevant contracts or correspondence

Authors

Alex Denne

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

Industries

Civil Procedure Rules (CPR): Framework of rules governing civil litigation, including pre-action protocols, Practice Direction on Pre-Action Conduct, and requirements for alternative dispute resolution consideration

Limitation Act 1980: Legislation setting out time limits for bringing legal claims and determining whether demand letters affect limitation periods

Law of Contract: Including Contract Act 1999 and common law principles governing contract formation, terms, and breach

Without Prejudice Rule: Evidence Act 1968 and common law principles protecting settlement negotiations and communications marked 'without prejudice'

Late Payment of Commercial Debts (Interest) Act 1998: Legislation governing statutory interest rates and compensation for late payment of commercial debts

Consumer Rights Act 2015: Key legislation protecting consumer rights and setting out business obligations in consumer transactions

Data Protection Act 2018 and UK GDPR: Laws governing the handling and protection of personal information in correspondence and legal communications

Defamation Act 2013: Legislation protecting against false statements that harm reputation, relevant for ensuring demand letter content is not defamatory

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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