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Free Demand Letter Template
Free Demand Letter Template

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Date: March 8th 2023



Acme LLC.

Corporation Corp.

This Contract is between Client (the "Client") and Acme LLC, a California limited liability company (the "Coach").

The Contract is dated January 23, 2023.


1.1 Project. The Client is hiring the Coach to develop a coaching relationship between the Client and Coach in order to cultivate the Client's personal, professional, or business goals and create a plan to achieve those goals through stimulating and creative interactions with the ultimate result of maximizing the Client's personal or professional potential.

1.2 Schedule. The Coach will begin work on February 1, 2023 and will continue until the work is completed. This Contract can be ended by either Client or Coach at any time, pursuant to the terms of Section 4, Term and Termination.

The Coach and Client will meet by video conference, 4 days per month for 2 hours.

1.3 Payment. The Client will pay the Coach an hourly rate of $150. Of this, the Client will pay the Coach $500.00 (USD) before work begins.

1.4 Expenses. The Client will reimburse the Coach's expenses. Expenses do not need to be pre-approved by the Client.

1.5 Invoices. The Coach will invoice the Client in accordance with the milestones in Section 1.3. The Client agrees to pay the amount owed within 15 days of receiving the invoice. Payment after that date will incur a late fee of 1.0% per month on the outstanding amount.

1.6 Support. The Coach will not be available by telephone, or email in between scheduled sessions.


- A coaching relationship is a partnership between two or more individuals or entities, like a teacher-student or coach-athlete relationship. Both the Client and Coach must uphold their obligations for the relationship to be successful.

- The Coach agrees to maintain the ethics and standards of behavior established by the International Coaching Federation (ICF).

- The Client acknowledges and agrees that coaching is a comprehensive process that may explore different areas of the Client's life, including work, finances, health, and relationships.

- The Client is responsible for implementing the insights and techniques learned from the Coach.


3.1 Overview. This section contains important promises between the parties.

3.2 Authority To Sign. Each party promises to the other party that it has the authority to enter into this Contract and to perform all of its obligations under this Contract.

3.3 Coach Has Right To Give Client Work Product. The Coach promises that it owns the work product, that the Coach is able to give the work product to the Client, and that no other party will claim that it owns the work product. If the Coach uses employees or subcontractors, the Coach also promises that these employees and subcontractors have signed contracts with the Coach giving the Coach any rights that the employees or subcontractors have related to the Coach's background IP and work product.

3.4 Coach Will Comply With Laws. The Coach promises that the manner it does this job, its work product, and any background IP it uses comply with applicable U.S. and foreign laws and regulations.

3.5 Work Product Does Not Infringe. The Coach promises that its work product does not and will not infringe on someone else's intellectual property rights, that the Coach has the right to let the Client use the background IP, and that this Contract does not and will not violate any contract that the Coach has entered into or will enter into with someone else.

3.7 Client-Supplied Material Does Not Infringe. If the Client provides the Coach with material to incorporate into the work product, the Client promises that this material does not infringe on someone else's intellectual property rights.


This Contract is ongoing until it expires or the work is completed. Either party may end this Contract for any reason by sending an email or letter to the other party, informing the recipient that the sender is ending the Contract and that the Contract will end in 7 days. The Contract officially ends once that time has passed. The party that is ending the Contract must provide notice by taking the steps explained in Section 9.4. The Coach must immediately stop working as soon as it receives this notice unless the notice says otherwise.

If either party ends this Contract before the Contract automatically ends, the Client will pay the Contractor for the work done up until when the Contract ends. The following sections don't end even after the Contract ends: 3 (Representations); 6 (Confidential Information); 7 (Limitation of Liability); 8 (Indemnity); and 9 (General).


The Client is hiring the Coach as an independent contractor. The following statements accurately reflect their relationship:

- The Coach will use its own equipment, tools, and material to do the work.

- The Client will not control how the job is performed on a day-to-day basis. Rather, the Coach is responsible for determining when, where, and how it will carry out the work.

- The Client will not provide the Coach with any training.

- The Client and the Coach do not have a partnership or employer-employee relationship.

- The Coach cannot enter into contracts, make promises, or act on behalf of the Client.

- The Coach is not entitled to the Client's benefits (e.g., group insurance, retirement benefits, retirement plans, vacation days).

- The Coach is responsible for its own taxes.

- The Client will not withhold social security and Medicare taxes or make payments for disability insurance, unemployment insurance, or workers compensation for the Coach or any of the Coach's employees or subcontractors.


6.1 Overview. This Contract imposes special restrictions on how the Client and the Coach must handle confidential information. These obligations are explained in this section.

6.2 The Client's Confidential Information. While working for the Client, the Coach may come across, or be given, Client information that is confidential. This is information like customer lists, business strategies, research & development notes, statistics about a website, and other information that is private. The Coach promises to treat this information as if it is the Coach's own confidential information. The Coach may use this information to do its job under this Contract, but not for anything else. For example, if the Client lets the Coach use a customer list to send out a newsletter, the Coach cannot use those email addresses for any other purpose. The one exception to this is if the Client gives the Coach written permission to use the information for another purpose, the Coach may use the information for that purpose, as well. When this Contract ends, the Coach must give back or destroy all confidential information, and confirm that it has done so. The Coach promises that it will not share confidential information with a third party, unless the Client gives the Coach written permission first. The Coach must continue to follow these obligations, even after the Contract ends. The Coach's responsibilities only stop if the Coach can show any of the following: (i) that the information was already public when the Coach came across it; (ii) the information became public after the Coach came across it, but not because of anything the Coach did or didn't do; (iii) the Coach already knew the information when the Coach came across it and the Coach didn't have any obligation to keep it secret; (iv) a third party provided the Coach with the information without requiring that the Coach keep it a secret; or (v) the Coach created the information on its own, without using anything belonging to the Client.

6.3 Third-Party Confidential Information. It's possible the Client and the Coach each have access to confidential information that belongs to third parties. The Client and the Coach each promise that it will not share with the other party confidential information that belongs to third parties, unless it is allowed to do so. If the Client or the Coach is allowed to share confidential information with the other party and does so, the sharing party promises to tell the other party in writing of any special restrictions regarding that information.


Neither party is liable for breach-of-contract damages that the breaching party could not reasonably have foreseen when it entered this Contract.


8.1 Overview. This section transfers certain risks between the parties if a third party sues or goes after the Client or the Coach or both. For example, if the Client gets sued for something that the Coach did, then the Coach may promise to come to the Client's defense or to reimburse the Client for any losses.

8.2 Client Indemnity. In this Contract, the Coach agrees to indemnify the Client (and its affiliates and their directors, officers, employees, and agents) from and against all liabilities, losses, damages, and expenses (including reasonable attorneys' fees) related to a third-party claim or proceeding arising out of: (i) the work the Coach has done under this Contract; (ii) a breach by the Coach of its obligations under this Contract; or (iii) a breach by the Coach of the promises it is making in Section 3 (Representations).

8.3 Coach Indemnity. In this Contract, the Client agrees to indemnify the Coach (and its affiliates and their directors, officers, employees, and agents) from and against liabilities, losses, damages, and expenses (including reasonable attorneys' fees) related to a third-party claim or proceeding arising out of a breach by the Client of its obligations under this Contract.


9.1 Assignment​. This Contract applies only to the Client and the Coach. Neither the Client nor the Coach can assign its rights or delegate its obligations under this Contract to a third-party (other than by will or intestate), without first receiving the other's written permission.

9.2 Arbitration. As the exclusive means of initiating adversarial proceedings to resolve any dispute arising under this Contract, a party may demand that the dispute be resolved by arbitration administered by the American Arbitration Association in accordance with its commercial arbitration rules.

9.3 Modification; Waiver. To change anything in this Contract, the Client and the Coach must agree to that change in writing and sign a document showing their contract. Neither party can waive its rights under this Contract or release the other party from its obligations under this Contract, unless the waiving party acknowledges it is doing so in writing and signs a document that says so.

9.4. Noticies.

(a) Over the course of this Contract, one party may need to send a notice to the other party. For the notice to be valid, it must be in writing and delivered in one of the following ways: personal delivery, email, or certified or registered mail (postage prepaid, return receipt requested). The notice must be delivered to the party's address listed at the end of this Contract or to another address that the party has provided in writing as an appropriate address to receive notice.

(b) The timing of when a notice is received can be very important. To avoid confusion, a valid notice is considered received as follows: (i) if delivered personally, it is considered received immediately; (ii) if delivered by email, it is considered received upon acknowledgement of receipt; (iii) if delivered by registered or certified mail (postage prepaid, return receipt requested), it is considered received upon receipt as indicated by the date on the signed receipt. If a party refuses to accept notice or if notice cannot be delivered because of a change in address for which no notice was given, then it is considered received when the notice is rejected or unable to be delivered. If the notice is received after 5:00pm on a business day at the location specified in the address for that party, or on a day that is not a business day, then the notice is considered received at 9:00am on the next business day.

9.5 Severability. This section deals with what happens if a portion of the Contract is found to be unenforceable. If that's the case, the unenforceable portion will be changed to the minimum extent necessary to make it enforceable, unless that change is not permitted by law, in which case the portion will be disregarded. If any portion of the Contract is changed or disregarded because it is unenforceable, the rest of the Contract is still enforceable.

9.6 Signatures. The Client and the Coach must sign this document using Bonsai's e-signing system. These electronic signatures count as originals for all purposes.

9.7 Governing Law. The validity, interpretation, construction and performance of this document shall be governed by the laws of the United States of America.

9.8 Entire Contract. This Contract represents the parties' final and complete understanding of this job and the subject matter discussed in this Contract. This Contract supersedes all other contracts (both written and oral) between the parties.



Acme LLC.

Corporation Corp.
Table of contents

A demand letter can be used to formally request payment or other uses. It’s usually the last notice for payment that a debtor will receive and when it’s sent the party making the demand should phrase the letter in a way that encourages payment. This can take the form of an incentive like a reduced payment amount if the money is paid immediately or even threatening to send the amount owed to a professional debt collection agency which will affect their credit score. Small claims court may be a viable option if the amount is within the range that the state small claims court handles. It varies by state but the highest state is $15,000 and the lowest is $2,500 as of this writing.

What is a Demand Letter?

A demand letter can be described as a notice that asks for money, the possession or seizing of assets, or for the recipient to take action on a specific matter. The most common use case is when trying to collect money for an amount that is past due. Like a cease and desist letter, it’s usually the last step before legal action is taken.

What to consider when writing a demand letter

  • It’s a formal notice so it’s important to use appropriate language and remain professional at all times
  • Describe the issue with true and accurate information - do not add to or spin the facts
  • Give a specific amount of time for resolution
  • Let the recipient know exactly what needs to be done for a resolution EG tells them how much should be paid
  • Attache the documents that serve as evidence of the demand
  • It should not be misconstrued as extortion from the language used

An eviction notice is a type of demand letter (that usually demands payment) but it’s highly regulated and is different in each state. Depending on the reason for eviction, the tenant will have a certain number of days to vacate the property. For example, many states allow immediate removal of the premises when sending an eviction notice for illegal activity.

The process for creating and sending a demand letter

A demand letter is a balancing act. It’s important to get your message across but it’s also necessary to remain professional at all times. It should be concise, deliver accurate information, and inform the recipient about the potential consequences.

1. Determine how much to ask for

Each state has its laws regarding the amount that can be brought to small claims court. Depending on the nature of the debt, it may be best to keep the amount within the range stipulated by the courts. Within the letter, the creditor will need to describe the nature of the demand. This is supported by attaching copies of the invoices, the agreement documents, etc. Keep in mind that Fair Debt Practice laws prevent you from sending a demand letter for debts that don’t have supporting evidence. That means verbal and handshake deals may not be able to pass muster.

2. Get the accurate amount

Compile the relevant documents that help you understand the total amount of the debt. This is so that you know exactly how much to demand in the letter. Each relevant item should be itemized and, as mentioned previously, the relevant documentation included. Don’t limit your search to just invoices, consider the receipts for payments they’ve made in the past to prove that there was an established relationship.

3. Set a deadline for resolution

All demand letters should have a specific date or timeframe for the issue to be addressed. This is usually 30 days, but depending on the debt, it can be as little as five days. When you’re finished drafting the letter using our demand letter creator which you can access on this page, send it to the recipient via certified mail. Only use the United States Postal Service for this. You can also send it via email to further emphasize the severity of the situation.

4. Take legal action

If there is no resolution or no response from the recipient of the letter then it may be necessary to take legal action to recover the debt. Small claims court can handle it if the amount is less than a specific amount which varies by state. After filing a case, a lawsuit will commence for a judgment to be levied against the person leading to a settlement. Depending on the contract signed, the debtor may also be responsible for attorney fees. If the amount is more than what can be handled by small claims court then it may be necessary to take the case to county circuit court.

5. Collect payment

If, on the other hand, the debtor responds in a positive manner, you can go about collecting payment in whichever way you’ve settled.

If in agreement, the payor can provide payment immediately. However if the issue involves Small Claims court, this could result in a Settlement which will entail additional steps.

6. Breach of contract demand letter

These are designed specifically for when a contract has been breached. The breach of contract demand letter outlines the breach and how the offending party can get back in compliance. Depending on the severity of the breach, it may be rectified through a single letter or legal action may need to be carried out.

7. How long should a settlement take?

This can vary widely depending on the issue at hand and the parties involved. If it’s something like rent payments then it can be completed in less than six weeks. If it’s a high-value business deal then it can take months for a settlement to be reached.

A rule of thumb to work with is having both parties come to the table to begin discussing the settlement within four weeks. If that’s not done then the creditor may start legal proceedings against the debtor.

Sample demand letter

Official Demand for Payment (sample letter)

John Doe

Feel Good, Inc.

22 Middleton Rd.

Atlanta, GA 12345

(222) 222-2222

James Worthy

1 Misc Lane

New York, NY 10562

May 1, 2021

Dear James Worthy,

The letter is a formal demand for payment of the outstanding balance you owe to Feel Good, Inc. for the amount of $2,150.

On March 29, 2021, you received massage services at 1 Misc Lane. Payment for the services was due on April 14, 2021. As of the time of writing this letter, the payment has been late for 17 days. Please find a copy of the original invoice attached to this document.

Unless we’re contacted by you immediately to clarify how the outstanding balance will be paid, we will have no other choice but to initiate legal action to recover the outstanding balance owed to us. This process may leave you liable for all attorney fees, costs for filing, and your credit history may also be affected.

Prompt attention to and resolution of this matter would be appreciated.


John Doe

Finance Manager

Feel Good, Inc.

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Free Demand Letter Template

First Name
Last Name
Acme LLC.
First Name
Last Name
Corporation Corp.
First Name
Last Name
Acme LLC.
First Name
Last Name
Corporation Corp.