Settlement Demand Letter Template

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A settlement demand letter is used to attempt to resolve a legal dispute out of court by offering or demanding a monetary settlement. The letter is usually sent by an injured party to negotiate a resolution with the opposing side before filing a lawsuit. If successful, the demand letter benefits both parties by avoiding costly and time-consuming litigation.

Settlement Demand Letter Template

A settlement demand letter is used to attempt to resolve a legal dispute out of court by offering or demanding a monetary settlement. The letter is usually sent by an injured party to negotiate a resolution with the opposing side before filing a lawsuit. If successful, the demand letter benefits both parties by avoiding costly and time-consuming litigation.

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Last updated March 28th, 2025

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A settlement demand letter is used to attempt to resolve a legal dispute out of court by offering or demanding a monetary settlement. The letter is usually sent by an injured party to negotiate a resolution with the opposing side before filing a lawsuit. If successful, the demand letter benefits both parties by avoiding costly and time-consuming litigation.

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Settlement Offer Demand Letter – A template for the responsible party to offer a monetary settlement to the claimant or victim.
 
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What to Include in a Settlement Demand

A persuasive settlement demand letter will typically include:

  • A short explanation of the incident or problem leading to the dispute, including where and when it occurred.
  • A description of the injuries, property damage, medical costs, emotional distress, or other losses.
  • The specific dollar amount for the settlement offer.
  • A deadline for responding to the demand letter.
  • A statement outlining the potential consequences if the demand is ignored.

When a Settlement Can Be Expected

How long a sender must wait for settlement after sending a demand letter varies 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 up to one year 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 out of court. Therefore, we are prepared to accept 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 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)]