Help witting a Letter of Demand for money

[matt]

Hi guys I have a friend that loaned someone quite a bit of money and such and he never got a promissery note to have the person pay him back. He was asking me does anyone know how to write a Letter of Demand, I was also wondering do any of you know how much it might cost to talk to a mediator to help out the situation.
thanks
matt

[ellielk]

You might want to research - or have your friend research - sample letters in the library. There are a number of sites where you can download - for a fee - sample letters.

However, this is some of the available free information: Demand means to state a need, requirement or entitlement, such as demanding payment or performance under a contract. In legal terms, demand also refers to the amount requested by a plaintiff during negotiations to settle a lawsuit or the amount of damages requested by the plaintiff as stated in their complaint. The demand in a complaint is governed by state laws, which vary by state. The plaintiff must generally ask for the type of damages sought, although not necessarily a dollar amount, in the complaint's demand or waive the right to recovery for that item of damages. Demand may also refer to a note payable at any time a request to pay is made, which is then said to be "payable on demand".

In the general sense, the term may describe any letter from one party to another demanding that the second party either take a particular action or not take that action. It is often a preliminary step to commencing court proceedings. The simplest letter of demand is for payment of money.

A letter of demand:
• is a letter demanding an outstanding payment or some other action.
• lets you detail why the payment or action required, how it should be carried out (eg. payment in full, payment over time), directions for the reply and a deadline for the reply.
• may be used to maintain some goodwill between business parties while encouraging payment, in order to avoid expensive litigation.
• may contain the "threat" that if it is not adhered to, the next communication between the parties will be through a formal legal proceeding.