The Letter of Demand Draft is a critical document in Irish business and legal practice, used when formal payment collection becomes necessary. This document typically follows unsuccessful informal attempts to collect payment and precedes potential legal action. When drafting a Letter of Demand Draft, organizations must ensure compliance with Irish debt collection laws, including the Statute of Limitations Act 1957 and Consumer Protection Act 2007. The letter should clearly state the debt amount, payment deadline, and consequences of non-payment. It's essential to maintain a professional tone while firmly establishing the creditor's legal position and intent to pursue further action if necessary. This document is particularly important as it often serves as the final formal communication before initiating legal proceedings.
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1. Sender Details: Full legal name, address, and contact information of the creditor or their representative
2. Recipient Details: Full legal name and address of the debtor
3. Date: Current date of the demand letter
4. Reference Line: Clear subject line indicating this is a formal demand for payment
5. Debt Details: Specific amount owed, date incurred, and nature of the debt
6. Payment Demand: Clear statement of demand for payment, including the total amount and deadline
7. Payment Instructions: Specific details on how and where to make the payment
8. Legal Consequences: Statement of potential legal action if payment is not received by the deadline
9. Closing: Professional closing with signature block and title of sender
1. Previous Communications Reference: Include when there have been prior attempts to collect the debt
2. Partial Payment Acknowledgment: Include when partial payments have been made and documenting remaining balance
3. Interest Calculation: Include when claiming statutory or contractual interest on the debt
4. Without Prejudice Notice: Include when the letter is part of ongoing negotiations or dispute
5. Payment Plan Option: Include when willing to accept payment in installments
6. Statutory Declaration: Include when required for specific types of debts or as per prior agreements
1. Original Invoice(s): Copies of relevant invoices showing the debt
2. Contract or Agreement: Copy of the original contract or agreement giving rise to the debt
3. Statement of Account: Detailed statement showing all transactions, payments, and current balance
4. Previous Correspondence: Copies of relevant prior communications regarding the debt
5. Payment History: Record of any payments made and dates
6. Interest Calculation Schedule: Detailed breakdown of interest calculations if applicable
Relevant legal definitions
Clauses
Relevant Industries
Banking and Financial Services
Retail
Manufacturing
Professional Services
Construction
Healthcare
Information Technology
Real Estate
Wholesale Trade
Education
Telecommunications
Legal Services
Transportation and Logistics
Consulting Services
Relevant Teams
Legal
Finance
Accounts Receivable
Credit Control
Treasury
Risk Management
Commercial Operations
Debt Recovery
Corporate Affairs
Business Operations
Relevant Roles
Credit Controller
Financial Manager
Accounts Receivable Manager
Collections Specialist
Legal Counsel
Finance Director
Debt Recovery Officer
Account Manager
Business Development Manager
Chief Financial Officer
Company Secretary
Treasury Manager
Risk Manager
Commercial Manager
Financial Controller
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