Monetary Demand Letter

What is a Monetary Demand Letter?

A Monetary Demand Letter can be used to demand the payment of money owed. It is usually used when a person who is owed money has made repeated demands to be paid and has been ignored. In this letter, the person who owes money will be given 5 days to pay the amount owed.

A Monetary Demand Letter can be used for any situation wherein a person is owed money, such as when a person loaned money, advanced payment on behalf of another person who sold goods, or provided services, among others.

The Monetary Demand Letter can be used as a written demand before pursuing legal action to recover the money.

What are the different types of Demand Letters?

The following are the different types of Demand Letters:

• Monetary Demand Letter. This is used to demand the payment of money owed by another person.
• Demand Letter for Ejectment. This is used when the owner of a property wants to take back or recover the possession of the property from a person who is currently possessing the same.
• Demand Letter for Return of Security Deposit. This is a document that a tenant can use to demand the return of the security deposit under a lease contract.

Is it mandatory to have a Monetary Demand Letter?

If the person who is owed a sum of money wants to bring the issue of non-payment of the person that owes money, to a court of law, such court will require that a written Demand Letter be sent to the person that owes money. Otherwise stated, a Monetary Demand Letter is a mandatory pre-requisite before a complaint of a sum of money is initiated in a court of law.

What must a Monetary Demand Letter contain?

A Monetary Demand Letter contains the following information:

• The details of the person who is owed a sum of money,
• The details of the person who owes a sum of money,
• The outstanding amount of money that should be paid,
• The amounts that are already paid, and
• The reason for asking for the payment of such amount.

Who is involved in the Monetary Demand Letter?

The sender is the person who is owed an amount of money. And the recipient is the person who owes such money. The sender must affix his signature thereon to signify that he wants to demand such amount of money.

What has to be done once the Monetary Demand Letter is ready?

If it will be sent via registered mail, at least two original copies should be printed. Both original copies of the letter should be signed by the sender (the person is owed an amount of money), one original copy should be kept by the sender and the other should be sent to the recipient (the person who owes an amount of money) by registered mail. After sending, the registry receipt or mail receipt in relation to the mailing of the second original copy must be kept by the sender.

If it will be sent via email, the sender must send an email attaching one scanned copy of the letter that is duly signed by the sender or one digital copy that is electronically signed by the sender. An email is a recommended way of sending this letter as the letter is sent instantly and it will enable the parties to keep their records in a convenient manner.

The person who owes money will then have 5 days to pay the amount owed.

What are the costs involved in the finalization of a Monetary Demand Letter?

Costs for sending the Monetary Demand Letter may depend on the method used by the sender in sending the letter. Email and instant messaging are the most cost-efficient ways of sending a letter as they are generally free, whereas costs for registered mail or courier will be dependent on the distance between the residence of the sender and the recipient.

Which laws are applicable to Monetary Demand Letter?

Although there are no laws that outline the contents of a Monetary Demand Letter, the general laws and procedures for obligations and contracts, such as loans, are governed by the Civil Code of the Philippines and the Rules of Court.

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