Is a demand letter valid if it is sent to an old address and received by someone else?
In the Philippines, demand letters are often sent by creditors to notify debtors of outstanding obligations. The question of validity arises when a demand letter is sent to an old address and is received by someone other than the intended recipient. The validity of such a letter depends on several legal principles, including proper service, actual receipt, and the legal presumptions of notice.
Proper Service of Demand Letters
In general, for a demand letter to be valid, it must be served in a way that ensures the debtor is notified of the demand. This often involves sending the letter to the last known address of the debtor. However, if the debtor has moved and the creditor was not informed of the new address, the letter may still be sent to the old address. The service is generally considered valid if the creditor acted in good faith, relying on the most recent information available.
Actual Receipt vs. Legal Presumption of Notice
While the debtor’s actual receipt of the letter is ideal, Philippine law recognizes the concept of legal presumption of notice. Under the Civil Code, when a letter is sent through a reliable medium, such as registered mail or a reputable courier service, and there is proof of delivery to the last known address, the law may presume that the debtor was notified. This holds true even if the letter was received by someone other than the debtor, as long as the address was correctly identified.
Burden of Proof
If a debtor disputes the validity of the demand letter on the grounds that it was not received, the burden shifts to the creditor to prove that the letter was properly addressed and sent. The creditor can provide evidence such as tracking information, proof of delivery, and records from the courier service. Once these are established, the court may uphold the presumption of notice.
Good Faith and Fair Dealing
Philippine law emphasizes good faith in all contractual relationships. A creditor who attempts to notify a debtor at the last known address, unaware of any address change, is generally acting in good faith. However, if the debtor can prove that the creditor deliberately sent the letter to an incorrect address to create a presumption of default, the creditor’s claim may be challenged.
Remedies for Debtors
If a debtor genuinely did not receive the demand letter and missed an opportunity to settle the obligation, they can raise this as a defense in any subsequent legal proceedings. Courts may consider this as a mitigating factor, especially if the debtor acted promptly once they became aware of the demand. However, ignoring the issue will not absolve the debtor of their responsibility to settle the debt.
In conclusion, while actual receipt of a demand letter is important, the law may still recognize the validity of the letter if it was sent in good faith to the debtor’s last known address and there is proof of delivery. Debtors are advised to inform creditors of any change in address to avoid disputes over proper notice.