---
title: "Draft a demand letter or a compromise offer"
url: "https://ailawframework.com/practice/commercial-litigation-and-dispute-resolution/draft-a-letter-of-demand-or-without-prejudice-settlement-offer/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A5-T1-R6-US"
practice_area: "Commercial Litigation & Dispute Resolution"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Draft a demand letter or a compromise offer

> Draft the letter from the contract clause, the amount and the dates the lawyer supplies. Mark any sentence that offers a compromise. Invent no fact and no citation.

Canonical page: https://ailawframework.com/practice/commercial-litigation-and-dispute-resolution/draft-a-letter-of-demand-or-without-prejudice-settlement-offer/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Commercial Litigation & Dispute Resolution](https://ailawframework.com/practice/commercial-litigation-and-dispute-resolution.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | Draft the letter from the contract clause, the amount and the dates the lawyer supplies. Mark any sentence that offers a compromise. Invent no fact and no citation. |
| What the lawyer must review | The lawyer reads every sentence before the letter is sent. Rule 408 excludes, when offered to prove the validity or amount of a disputed claim, furnishing or offering valuable consideration in compromising the claim, and conduct or a statement made during compromise negotiations, with the exceptions the rule states. The lawyer decides whether the letter is a compromise offer and how it is marked. A citation the lawyer has not opened is removed. Formal Opinion 512 and Rule 1.1 require that verification. Do not put the client's strategy into a public tool (Rule 1.6). |
| Written for | United States |
| Applies to | [Draft a letter of demand or without-prejudice settlement offer](https://ailawframework.com/practice/commercial-litigation-and-dispute-resolution/draft-a-letter-of-demand-or-without-prejudice-settlement-offer.md) |

## Checking plan

- What the AI does: Draft the letter from the contract clause, the amount and the dates the lawyer supplies. Mark any sentence that offers a compromise. Invent no fact and no citation.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Rule 408 does not make every pre-suit letter inadmissible. The lawyer decides whether negotiations have started.
- Statements in a compromise of a government regulatory claim can be admissible in a later criminal case. Read the exception in Rule 408 before writing to an agency.

## Sources

- [Federal Rule of Evidence 408 (compromise offers and negotiations)](https://www.law.cornell.edu/rules/fre/rule_408) (checked 2026-10-22)
- [ABA Formal Opinion 512, Generative Artificial Intelligence Tools (29 July 2024)](https://www.americanbar.org/content/dam/aba/administrative/professional_responsibility/ethics-opinions/aba-formal-opinion-512.pdf) (checked 2026-10-22)
- [ABA Model Rule 1.1, Competence](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_1_competence/) (checked 2026-10-22)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Federal Court Form 16: applicant's genuine steps statement](https://ailawframework.com/precedents/commercial-litigation-and-dispute-resolution/form-fca-16-applicant-genuine-steps.md) | Form | Yellow | Link to Federal Court Form 16, the applicant's genuine steps statement under rule 8.02. |
| [Federal Court Form 11: respondent's genuine steps statement](https://ailawframework.com/precedents/commercial-litigation-and-dispute-resolution/form-fca-11-respondent-genuine-steps.md) | Form | Yellow | Link to Federal Court Form 11, the respondent's genuine steps statement under rule 5.03. |
| [Pre-suit commercial demand letter](https://ailawframework.com/precedents/commercial-litigation-and-dispute-resolution/us-presuit-demand-letter.md) | Letter | Yellow | Demand letter before a federal commercial suit, stating the contract or duty, the amount or act sought, and a reply date, without consumer-debt disclosures. |

Signed-in accounts can read the full text of each one.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*