Below is a comprehensive discussion on demand letters in the Philippine setting, covering (1) definition and purposes, (2) legal bases and interplay with Philippine Remedial Law, (3) ethical considerations under Legal Ethics, (4) best practices and recommended format, and (5) sample templates and drafting suggestions.

1. Definition and Purpose of Demand Letters

A demand letter is a written communication typically sent by a lawyer on behalf of a client to another party (an individual, corporation, or organization). It states:

The factual basis of a claim or grievance;
The legal grounds that support the claim or entitlement;
The specific relief or remedy being requested (e.g., payment of a debt, cessation of a wrongful act, compliance with a contractual obligation, rectification of damages caused); and
The consequences (legal or otherwise) if the demand is not complied with within a specified period.

Key Purposes

Extrajudicial Settlement: Often, a demand letter is an attempt to resolve a dispute without resorting to litigation, saving time and resources.
Legal Prerequisite: In certain causes of action (e.g., collection of sum of money, breach of contract), making a formal demand is a prerequisite before filing suit in court.
Evidence of Good Faith: A properly drafted demand letter shows good faith in giving the other party an opportunity to remedy or address the grievance prior to litigation.
Documentation: It creates a formal record that you have notified and requested the other party to comply with an obligation.

2. Legal Bases and Relationship to Remedial Law

2.1 Extrajudicial Demand Under Civil Law

Under the Civil Code of the Philippines (Republic Act No. 386), an extrajudicial demand can have legal consequences, such as:
- Accrual of interest (e.g., the running of interest on a monetary obligation may depend on a formal demand).
- Application of default in obligations. The debtor may be put in default (“mora solvendi”) if there is a formal demand and a refusal or failure to comply.

2.2 Rules of Court and Judicial Proceedings

Rule 70 (Forcible Entry and Unlawful Detainer): In some unlawful detainer cases, a demand to vacate is required before an ejectment suit can be filed.
Rule 8, Section 5 of the Rules of Court: The factual averments and existence of a cause of action often include the requirement to prove that a defendant failed to comply with a demand.
Rule 3 (Parties): A demand letter can help clarify the real parties in interest.

2.3 Barangay Conciliation (Katarungang Pambarangay)

Certain disputes must first be subjected to Barangay Conciliation before they can be filed in court. Although not always identical to a formal demand letter, a written demand can serve as evidence or be utilized to show the need for such conciliation or that the parties attempted to settle amicably.

3. Ethical Considerations Under Legal Ethics

In drafting and sending demand letters, lawyers in the Philippines must adhere to the Code of Professional Responsibility, as well as the newly adopted Code of Professional Responsibility and Accountability (if in effect). Key points include:

Candor and Honesty:
- A lawyer must ensure that the factual allegations in the letter are truthful and that the legal claims have a reasonable basis in law.
- Avoid threats or misrepresentations.
Fair Dealing:
- The lawyer should refrain from using offensive language or intimidation tactics that violate the dignity of the profession.
- Demand letters should not harass, coerce, or unduly pressure the recipient in a manner that is unethical.
Confidentiality:
- The lawyer must protect confidential client information. Details included in the demand letter should be strictly relevant to the claim.
Duty to Avoid Frivolous Claims:
- A lawyer must only assert claims that are warranted by law and supported by facts, or where a good-faith argument exists for the extension or modification of existing law.
Professional Conduct:
- Lawyers should be mindful of the language used in the demand letter, ensuring it remains professional and respectful.

4. Best Practices and Recommended Format

A demand letter must be clear, concise, and complete. Below is a recommended structure:

Letterhead and Contact Information
- Use the law firm’s or lawyer’s professional letterhead.
- Include address, contact numbers, email, and Integrated Bar of the Philippines (IBP) number, PTR number, and MCLE compliance details (if required).
Date and Recipient’s Details
- State the complete name, address, and contact details of the recipient.
- Use the proper salutation (e.g., “Dear Mr. [Name]” or “Dear Ms. [Name]”).
Subject Heading
- Briefly indicate the nature of the letter (e.g., “Re: Demand for Payment of Unpaid Rentals” or “Re: Demand to Cease and Desist from Unlawful Acts”).
Introduction
- Clearly identify yourself (or your client, if you are writing on behalf of another).
- State the basis of your relationship or the reason for communication. Example: “I represent Mr. Juan Dela Cruz concerning your unpaid loan obligation.”
Factual Narrative
- Present a concise narrative of the facts leading to the claim.
- Include relevant dates, amounts, transactions, or events.
Legal Basis
- Briefly explain the legal foundation of your demand (e.g., relevant provisions of the Civil Code, or terms of a contract).
- If citing jurisprudence or statutory provisions is strategic, include them succinctly.
Demand Proper
- Clearly state the specific action you want the recipient to take (e.g., “Pay the sum of PHP [amount] within [number] days,” or “Vacate the premises within 15 days”).
- Specify the timeline for compliance (“within 5 business days,” “within 30 days from receipt of this letter,” etc.).
Consequences of Non-Compliance
- Politely but firmly state the legal or procedural steps that you will be compelled to take if the demand is not heeded (e.g., “Should you fail to comply, we shall pursue all legal remedies available, including the filing of a complaint in court…”).
Closing and Signature
- Use a courteous closing.
- Affix your signature over your typed name, with your professional details (IBP number, Roll number, etc.).
Attachments (if any)

If there are documents that support your demand (e.g., copies of contracts, promissory notes, official receipts), list them as enclosures.

5. Sample Demand Letters and Drafting Suggestions

Below are two generic templates. Adjust them according to your client’s specific factual and legal circumstances.

5.1 Sample Demand Letter for Payment of Debt

[Law Firm Letterhead]
[Address]
[Contact Details]
[Date]

[Name of Addressee]
[Position/Designation, if applicable]
[Company Name, if applicable]
[Address]

Re: Demand for Payment of Outstanding Obligation

Dear [Mr./Ms./Mrs. Surname],

I am writing on behalf of my client, [Full Name of Client], regarding your unpaid obligation under the [Loan Agreement / Promissory Note / Transaction], dated [Date of Document]. 

1. **Statement of Facts**  
   - On [Date], you executed a [Loan Agreement / Promissory Note] in favor of my client for the amount of PHP [Amount], payable on or before [Due Date].  
   - Despite repeated verbal and written reminders, you have failed to settle the outstanding obligation.

2. **Legal Basis**  
   - Pursuant to Articles 1159 and 1169 of the Civil Code of the Philippines, obligations arising from contracts have the force of law between the parties. Once an obligation is due and demandable, the obligor who fails to perform is considered in default.

3. **Demand**  
   - In view of the foregoing, we hereby **demand** that you pay the total amount of PHP [Exact Amount], plus accrued interest at the rate of [Interest Rate]% per annum, within [Number of Days] days from receipt of this letter.

4. **Consequences of Non-Compliance**  
   - Should you fail to comply with this demand, we shall be constrained to pursue all legal remedies available under the law, including filing the appropriate civil action for collection and, where warranted, the attachment of your assets. 

We strongly advise you to treat this matter with urgency. If you have any questions or wish to discuss potential arrangements for settlement, you may reach out to the undersigned through the contact details provided.

We trust you will give this communication your prompt attention.

Sincerely,

[Signature]
[Name of Lawyer]
[Roll of Attorneys No., IBP No., PTR No., MCLE Compliance No.]
Counsel for [Name of Client]

Enclosures: [List of any enclosed documents, if applicable]

5.2 Sample Demand Letter for Unlawful Detainer (Ejectment)

[Law Firm Letterhead]
[Address]
[Contact Details]
[Date]

[Name of Addressee]
[Address]

Re: Demand to Vacate Leased Premises

Dear [Mr./Ms./Mrs. Surname],

We represent [Landlord’s Name], the lawful owner of the premises located at [Complete Address of Property]. It has come to our client’s attention that you have continued to occupy the property despite the expiration of your lease contract on [Date of Expiration].  

1. **Factual Background**  
   - On [Date], you entered into a lease agreement with our client for a fixed term ending on [End Date].  
   - Despite the expiration of the lease and subsequent reminders, you remain in possession of the premises without our client’s consent.

2. **Legal Grounds**  
   - Under Article 1673 of the Civil Code and Rule 70 of the Rules of Court, the lessor has the right to demand the lessee to vacate the premises upon the expiration of the lease term.

3. **Demand**  
   - We hereby formally **demand** that you vacate and surrender peaceful possession of the property to our client within [Number of Days] days from receipt of this letter.

4. **Consequences of Non-Compliance**  
   - Should you fail to vacate within the specified period, we shall file the appropriate action for unlawful detainer (ejectment) before the proper court, and we will likewise seek all damages incurred due to your unlawful occupation of the property.

We trust that you will heed this demand and avoid unnecessary litigation. Please contact us should you wish to discuss an orderly turnover of the property or if there are any clarifications.

Sincerely,

[Signature]
[Name of Lawyer]
[Roll of Attorneys No., IBP No., PTR No., MCLE Compliance No.]
Counsel for [Landlord’s Name]

Enclosures: [List of relevant documents, if applicable]

6. Practical Tips for Drafting and Sending Demand Letters

Know Your Audience: Tailor your tone and complexity to the recipient. A corporate debtor may expect more formal and legal language, while an individual might require a clearer, more straightforward explanation.
Be Concise but Comprehensive: Provide enough detail for the recipient to understand your claim, but do not overload the letter with irrelevant legal citations or excessive narratives.
Documentation: Keep copies of all communications, send via registered mail, or ensure you can document proof of service (e.g., personal service with acknowledgment).
Set Realistic Deadlines: While you want to emphasize urgency, allow a reasonable period for compliance or negotiation.
Check Mandatory Requirements: Certain actions require specific demands or notices (e.g., extrajudicial demand for interest accrual, demand to pay rental arrears prior to filing ejectment, barangay conciliation if required by law).
Consider Settlement Options: Propose or remain open to settlement where possible—this often saves time and legal costs.

7. Final Reminders

Not a Substitute for Legal Advice: The specifics of each dispute can vary significantly. Consult a lawyer for customized legal advice.
Observe Good Faith: Always ensure the claims you make in your demand letter are honest, accurate, and made in good faith.
Proceed Ethically: Do not use a demand letter to harass, defame, or threaten another party beyond valid legal remedies.
Preserve Evidence: Keep a well-documented file in case litigation becomes necessary.

Conclusion

Demand letters are a cornerstone of Remedial Law practice in the Philippines, serving as both a procedural and strategic tool. When prepared meticulously, they can expedite dispute resolution and often obviate the need for protracted court proceedings. By integrating sound legal reasoning, clarity in factual presentation, ethical compliance, and proper formatting, lawyers uphold their professional responsibilities while advocating effectively for their clients’ rights and interests.