The Demand Letter Damages is a critical legal document used in Hong Kong's legal system when seeking compensation for losses or harm suffered. It serves as a formal prerequisite to litigation, demonstrating compliance with pre-action protocols and the principle of attempting amicable resolution before court proceedings. The document must be drafted with precision, clearly stating the legal basis for the claim, quantifying damages with supporting evidence, and providing a reasonable timeframe for response. In Hong Kong's common law jurisdiction, such letters carry significant weight in subsequent legal proceedings and can influence cost orders if the matter proceeds to court. The Demand Letter Damages should include sufficient detail to enable the recipient to investigate the claim and make an informed decision about their response, while also serving as evidence of the claimant's reasonable attempt to resolve the dispute.

1. Header Information: Date, reference number, mode of delivery (e.g., Registered Mail/Courier), recipient's details, and subject line

2. Introduction: Identifies the sender, their capacity, and confirms this is a formal demand letter

3. Background of Incident: Clearly states the events giving rise to the claim, including relevant dates and factual details

4. Legal Basis: Outlines the legal grounds for the claim and the recipient's liability

5. Quantification of Damages: Detailed breakdown of all damages being claimed, including calculations and justifications

6. Interest Calculation: Specification of any interest claimed on the damages

7. Formal Demand: Clear statement of the total amount demanded and payment deadline

8. Next Steps: Statement of intended legal action if payment is not received by the deadline

9. Closing: Standard closing, signature block, and sender's contact information