Document background
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.
