Settlement Demand Letter Template

Create Document

A settlement demand letter is used to request or offer money as compensation for resolving a dispute. The letter is usually sent by an injured party to negotiate a resolution with the opposing side before going to court. If successful, the demand letter helps both parties avoid costly and time-consuming litigation.

Settlement Demand Letter Template

A settlement demand letter is used to request or offer money as compensation for resolving a dispute. The letter is usually sent by an injured party to negotiate a resolution with the opposing side before going to court. If successful, the demand letter helps both parties avoid costly and time-consuming litigation.

Create Document
PDF
Word (.docx)
OpenDocument
PDF
Word (.docx)
OpenDocument

Last updated March 11th, 2025

Document Preview

A settlement demand letter is used to request or offer money as compensation for resolving a dispute. The letter is usually sent by an injured party to negotiate a resolution with the opposing side before going to court. If successful, the demand letter helps both parties avoid costly and time-consuming litigation.

Downloads: 5
  1. Home »
  2. Demand Letter »
  3. Settlement

Common Uses

A settlement demand letter is often used to resolve disputes related to:

  • Personal Injury
  • Breach of Contract
  • Medical Malpractice
  • Automobile Accidents
  • Property Damage
  • Employment Discrimination
  • Debt Collection
  • Denied Insurance Claims

What to Include in a Settlement Demand

Although the level of detail can differ from one situation to the next, a persuasive settlement demand letter will typically include a:

  • Short description of the incident or problem leading to the dispute, including where and when it occurred.
  • List of injuries, property damage, medical costs, emotional distress, or other losses.
  • Specific dollar amount for the settlement offer.
  • Deadline for responding to the demand letter.
  • Statement outlining the potential consequences if the demand is ignored.

When a Settlement Can Be Expected

Settlement times vary depending on the nature of the dispute. Simple cases may settle within one to two months, while complex ones, such as those with multiple parties or lengthy negotiations, can take several months or longer.

Sample

Download: PDF, Word (.docx), OpenDocument

SETTLEMENT DEMAND LETTER

[SENDER NAME]
[SENDER ADDRESS]
[SENDER CONTACT INFO]

Date: [DATE]

[RECIPIENT NAME (AND TITLE, IF APPLICABLE)]
[RECIPIENT BUSINESS NAME (IF APPLICABLE)]
[RECIPIENT ADDRESS]

THIS IS OUR FINAL ATTEMPT TO SETTLE THIS DISPUTE

Dear [RECIPIENT NAME],

I, [NAME OF PERSON SENDING LETTER], am writing this letter as a last and final attempt to settle the matter of: [DESCRIBE DISPUTE TO BE SETTLED].

It is in the best interests of both parties to settle this matter. Therefore, we are prepared to [“ACCEPT” OR “OFFER”] a sum of $[AMOUNT] as a settlement.

If there is no response to this demand letter by [DATE], all legal rights may be explored, including, but not limited to, legal proceedings necessary in accordance with state and federal laws.

This demand letter serves as official notice to you and may be tendered in court as evidence of your failure to cooperate. If legal action is to occur, you may be held liable for court fees, attorney’s fees, and damages.

Sincerely,

________________________
[SENDER’S NAME (AND TITLE, IF APPLICABLE)]