A demand notice is a legal statement of debt owed and the final request made to pay the amount, failing which legal actions will be taken. It is an intimation of a demand or payment claim made by one party to the other party. Notice can be verbal or written, depending on the nature of the claim. It can also be used as a reminder to pay outstanding dues.
Although they are legally required, it is most issues in contract law, tort law.
As per section 220, the receiver should pay the amount specified in the demand notice format within 30 days from the date the message has been served.
According to the law, you are obligated to send a demand notice only in particular cases. And if you are unsure of sending a demand notice, it’s advisable to consult a lawyer.
It should contain the following.
1. Name and address of the person who is obligated to pay the amount before the due date.
2. You should specify all information on the money owing and the period for payment.
3. Intimation of upcoming legal proceedings if the money due is not paid within the prescribed time.
4. A proper acknowledgment needs to be given by the receiver of the letter. If no such action is taken within 15 days of the issue of notice, it is assumed that the person has received it according to the law.
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