Counter Demand Letter Template for Singapore

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Key Requirements PROMPT example:

Counter Demand Letter

"I need a Counter Demand Letter to respond to ABC Manufacturing's claim dated January 15, 2025, regarding alleged defective machinery supplies, where we want to counter-claim for their late payments and breach of maintenance obligations totaling SGD 250,000."

Document background
A Counter Demand Letter is utilized when responding to a demand letter with substantive counter-claims or disputes. This document is particularly relevant in Singapore's legal framework where formal pre-litigation correspondence plays a crucial role in dispute resolution. The Counter Demand Letter should articulate clear legal positions, present well-documented counter-claims, and maintain professional tone while adhering to Singapore's civil procedure requirements. It serves as a critical document in establishing the responding party's position and can significantly influence subsequent legal proceedings or settlement negotiations.
Suggested Sections

1. Recipient Details: Full name, address, and reference to original demand letter

2. Reference to Original Demand: Clear identification of the original demand being countered, including date and reference numbers

3. Factual Background: Chronological summary of relevant events and circumstances leading to the counter demand

4. Legal Position: Statement of legal basis for counter-demand including relevant legislation and precedents

5. Counter Claims: Detailed explanation of counter-demands with specific amounts and justification

6. Required Action: Clear statement of actions required from recipient with specific deadlines

7. Timeline: Deadline for response or compliance and consequences of non-compliance

Optional Sections

1. Without Prejudice Statement: Optional section to be included when offering settlement terms to protect negotiation positions

2. Legal Consequences: Detailed outline of potential legal actions if demands are not met

3. Settlement Terms: Proposed terms for resolution of the dispute including payment terms and conditions

Suggested Schedules

1. Supporting Documents Schedule: List and copies of relevant contracts, correspondence, or evidence supporting counter-claims

2. Calculation Schedule: Detailed breakdown of amounts claimed including interest calculations if applicable

3. Timeline Schedule: Chronological list of relevant events and communications with dates

4. Original Demand Letter: Attachment of the original demand letter being responded to

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

Contract Law of Singapore (Chapter 53): Primary legislation governing formation, validity, and enforcement of contracts in Singapore. Essential for establishing the legal basis of claims and counterclaims.

Civil Law Act (Chapter 43): Fundamental legislation that modifies and supplements common law and equity principles in Singapore's civil matters.

Limitation Act (Chapter 163): Specifies statutory time limits for bringing various types of legal claims, crucial for determining validity of demands and counter-demands.

Evidence Act (Chapter 97): Governs the admissibility of evidence in legal proceedings, including requirements for documentary evidence in demand letters.

Unfair Contract Terms Act (Chapter 396): Regulates unfair terms in contracts and protects against unreasonable exclusion clauses, relevant for assessing validity of claims.

Electronic Transactions Act (Chapter 88): Provides legal framework for electronic communications and transactions, important if demand letters are exchanged electronically.

Misrepresentation Act (Chapter 390): Deals with false statements made during contract formation, relevant for challenging claims based on misrepresentation.

Rules of Court (Chapter 322, Rule 5): Procedural rules governing civil litigation in Singapore courts, including requirements for legal notices and pre-action protocols.

Common Law Principles - Counterclaims: Legal principles governing the assertion of counterclaims and set-offs in response to demands.

Common Law Principles - Mitigation: Principles requiring parties to take reasonable steps to minimize their losses in contract disputes.

Common Law Principles - Causation: Legal principles establishing the connection between breach and damages, including remoteness of damage.

Industry-Specific Regulations: Relevant regulatory frameworks specific to the industry or subject matter of the dispute.

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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