The Letter of Demand for Costs is a crucial document in South African legal practice, used when one party seeks to recover legal costs from another party following legal proceedings or agreements. This document type is essential in both civil and commercial matters where costs have been awarded by a court or agreed upon between parties. The letter must be drafted in compliance with South African legislation, including the Legal Practice Act, Debt Collectors Act, and relevant court rules. A properly drafted Letter of Demand for Costs should clearly state the amount claimed, provide detailed breakdowns of costs, reference any relevant court orders or agreements, and specify payment terms and deadlines. It serves as a final warning before initiating enforcement proceedings and is often required as evidence in subsequent legal actions for cost recovery. The document is particularly important in maintaining professional standards in legal cost recovery and ensuring procedural fairness in the South African legal system.

1. Letterhead and Date: Legal firm's letterhead, reference numbers, and current date

2. Recipient Details: Full name and address of the recipient/debtor

3. Subject Line: Clear indication that this is a Letter of Demand for Costs, including relevant case number if applicable

4. Matter Reference: Reference to the specific legal matter or case that gave rise to the costs

5. Cost Order Details: Reference to and details of any court order or agreement regarding costs

6. Amount Claimed: Clear statement of the total amount being claimed

7. Payment Instructions: Banking details and payment deadline

8. Consequences of Non-Payment: Clear statement of legal actions that will follow if payment is not made

9. Closing: Formal closing, signature block, and attorney details