Demand Letter Without Prejudice for New Zealand

Demand Letter Without Prejudice Template for New Zealand

A Without Prejudice Demand Letter is a formal document used in New Zealand's legal framework to request payment of an outstanding debt while preserving the possibility of settlement negotiations. The document combines the formality of a legal demand with the protection of settlement privilege under New Zealand law, allowing parties to engage in open communication about resolving the debt without these communications being used in subsequent legal proceedings. It serves as a crucial step in the debt recovery process, often preceding formal legal action, and must comply with New Zealand's Contract and Commercial Law Act 2017 and related legislation.

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What is a Demand Letter Without Prejudice?

The Demand Letter Without Prejudice is a critical tool in New Zealand's debt recovery process, designed to formally request payment while maintaining the confidentiality of settlement negotiations. This document type is particularly useful when parties wish to engage in settlement discussions while preserving their legal rights and avoiding the communications being used as evidence in potential court proceedings. It should be used when there is an outstanding debt and the creditor wishes to maintain a professional approach to recovery while keeping settlement options open. The letter must comply with New Zealand legislation, including the Contract and Commercial Law Act 2017, Fair Trading Act 1986, and relevant common law principles regarding "Without Prejudice" communications. It typically includes detailed information about the debt, payment terms, consequences of non-payment, and settlement proposals, while maintaining the protective "Without Prejudice" status that encourages open negotiation.

What sections should be included in a Demand Letter Without Prejudice?

1. Letter Header with 'Without Prejudice' Marking: Clear marking of 'WITHOUT PREJUDICE' at the top of the letter to ensure legal privilege is maintained

2. Recipient Details: Full name and address of the debtor, including any relevant reference numbers

3. Debt Summary: Clear statement of the total amount owed, including a breakdown of principal, interest, and any additional charges

4. Debt Origin: Brief explanation of how the debt arose, including relevant dates and contract references

5. Payment Demand: Clear statement of the amount demanded and the payment deadline

6. Legal Basis: Reference to the legal basis for the claim and any relevant contractual terms

7. Consequences Statement: Clear outline of the actions that will be taken if payment is not received by the specified deadline

8. Settlement Proposal: Specific terms for settlement, including any proposed payment arrangements

9. Response Timeline: Clear deadline for response and preferred method of communication

10. Signature Block: Signature, name, and position of the sender or authorized representative

What sections are optional to include in a Demand Letter Without Prejudice?

1. Interest Calculation: Detailed breakdown of interest calculations, used when the debt includes significant interest charges

2. Previous Communications: Reference to prior attempts to resolve the matter, used when there has been a history of communication

3. Payment History: Summary of any partial payments made, used when there have been previous payments

4. Without Prejudice Save As To Costs: Extended privilege marking, used when you want to preserve the right to refer to the letter in relation to costs

5. Dispute Resolution Options: Information about alternative dispute resolution methods, used when willing to consider mediation or arbitration

What schedules should be included in a Demand Letter Without Prejudice?

1. Schedule A - Debt Calculation: Detailed breakdown of the debt, including principal, interest, and any additional charges

2. Schedule B - Payment History: Chronological list of all relevant transactions and attempts at payment

3. Schedule C - Supporting Documents: Copies of relevant contracts, invoices, or other documentation supporting the debt claim

4. Schedule D - Settlement Terms: Detailed terms of any proposed settlement arrangement, including payment schedule if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

New Zealand

Publisher

Genie AI

Document Type

Demand Letter

Cost

Free to use
Relevant Industries

Financial Services

Professional Services

Retail

Construction

Manufacturing

Technology

Healthcare

Education

Real Estate

Wholesale Trade

Legal Services

Consulting

Transport and Logistics

Agriculture

Relevant Teams

Legal

Finance

Credit Control

Accounts Receivable

Risk Management

Operations

Administration

Commercial

Debt Recovery

Corporate Services

Relevant Roles

Credit Controller

Financial Manager

Legal Counsel

Collections Manager

Accounts Receivable Manager

Chief Financial Officer

Business Owner

Company Director

Credit Risk Manager

Debt Recovery Specialist

Commercial Lawyer

Finance Director

Operations Manager

Administrative Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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