Responding to Demand Letters
The Nature of Demand Letters
A demand letter serves as formal written communication usually sent by one party to another to claim a legal right or to notify the recipient of legal obligations, such as payment of debt, performance under a contract, or compliance with specific terms. In the Philippines, a demand letter is often a precursor to legal proceedings and acts as an opportunity for the parties to resolve their issues amicably without resorting to court action.
Refusal to Acknowledge the Demand Letter
Ignoring or refusing to acknowledge a demand letter is not illegal per se, but it can have legal consequences. Typically, a demand letter will specify a deadline for compliance, failing which, the sender may initiate legal action. The refusal to acknowledge or act upon a demand letter may lead to the other party proceeding with a court case, which may result in a default judgment if the recipient fails to respond.
Importance of Legal Advice
Upon receipt of a demand letter, it is advisable to consult a lawyer to understand its implications and to assess the legal options available. A lawyer can help interpret the terms of the letter, advise on its legality, and formulate a response strategy. This may include negotiation with the sender or preparing for the possibility of legal action.
Potential Legal Consequences
Refusing to acknowledge a demand letter might result in the sender employing other legal remedies, such as filing a lawsuit or initiating arbitration. Subsequent legal proceedings can be time-consuming, stressful, and expensive. Furthermore, ignoring a demand letter may be considered by the court when determining liability and damages, potentially disadvantaging the recipient.
Conclusion
While it is not illegal to refuse or ignore a demand letter, doing so can expose the recipient to legal risks. It is crucial to seek qualified legal advice upon receipt of such a letter to ensure that one's rights and interests are adequately protected.