Letter · Commercial Litigation & Dispute Resolution
Pre-suit commercial demand letter
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.
- Kind
- Letter. A letter or email you adapt and send.
- Where it applies
- United States
- AI use
- Yellow You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at
- 22 October 2026
- Status
- Maintained. Checked on 22 October 2026 against the 3 authorities it cites, for United States.
- Version
- 1
- Source
- Written for this library
When to use it
Use for a business dispute before filing in federal court. Do not use it for a consumer debt. A debt that is primarily for personal, family or household purposes is handled under the Fair Debt Collection Practices Act and Regulation F, not this letter.
Used for these tasks
- Draft a letter of demand or without-prejudice settlement offer
- Draft the mediation position paper and a settlement-range briefing note
Each task page says how far AI may help with the task and what the lawyer must review.
How AI may be used
AI may draft the letter from the contract, the invoices and the lawyer's theory. The lawyer fixes the amount, the legal basis and any reply date before it is sent.
AI may
- Assemble the chronology and the invoice list from the documents the lawyer identifies
- Calculate a total only from figures the lawyer has marked on those documents, and show the arithmetic
- List a fact the draft uses that is not in the documents provided
AI must not
- Must not add interest, fees or a statutory penalty that is not in the contract or in a statute the lawyer has opened
- Must not threaten a claim, a court, or a deadline the lawyer has not approved
- Must not send the letter, and must not use consumer-collection wording on a commercial debt or this letter on a consumer debt
The lawyer checks
- The amount, the contract clause and the facts match the file
- The letter is not a consumer collection letter, and the recipient's counsel is used if the recipient is represented
- Anything that is a compromise offer is separated from the statement of the claim
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
Read the full text
The full text is available after you log in. It is free. When you log in you can:
- read the whole precedent, with its drafting notes beside it;
- copy it, or download it as a Word file or Markdown;
- add it to your firm’s knowledge base, so colleagues can find it;
- let the AI tools you connect read it from that knowledge base.
The summary, the law it rests on and the AI-use guidance above stay public. Privacy.
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