Demand Letter vs Settlement Offer
Use the right document to prompt payment—an initial demand or a concrete offer to resolve.
Published October 26, 2025
Demand letters put the recipient on notice of your claim, while settlement offers outline the terms you are willing to accept. Knowing which tool to send keeps negotiations on track and preserves leverage.
When to use this
- Send a demand letter when you need to establish liability, amount owed, and a payment deadline.
- Send a settlement offer when discussions have progressed and you're ready to lay out specific terms.
- Document both when you anticipate motion practice and want proof of reasonable efforts.
How to do it (fast)
- Use DemandLetterPDF to capture parties, claim summary, and supporting exhibits before the case heats up.
- If negotiations move forward, draft a PaymentPlanAgreement so each installment is recorded in writing.
- Track responses, counteroffers, and attachments with TimelineCourt so you can show the court your diligence.
- Store PDFs locally or deliver via certified mail to document service.
Why this helps
- Distinguishing demands from offers shows the judge you negotiated in good faith.
- A well-structured demand preserves evidence of damages and deadlines.
- Settlement offers that reference prior demands help justify fee shifting if litigation continues.
Related tools
Not legal advice. Courts set their own rules. Keep your original records.