Document background
The Breach of Contract Letter Before Action is a critical document in Philippine commercial practice, serving as a mandatory prerequisite before pursuing litigation in many cases. It demonstrates the sender's attempt to resolve the dispute amicably while preserving their legal rights under Philippine law. This document is typically used when one party has clearly violated terms of a contract and informal resolution attempts have failed. The letter must be carefully drafted to include specific details about the breach, quantified damages, demanded remedies, and compliance deadlines. While the Civil Code of the Philippines does not explicitly require a formal demand letter in all cases, it is considered best practice and can significantly strengthen the sender's position if litigation becomes necessary. The document also serves as important evidence of the sender's reasonable approach to dispute resolution, which is viewed favorably by Philippine courts.
