How does Lawyers’ Letter of demand help enterprises?

Date: 30 July 2021

Writer: Huy Nguyen

Nowadays, the development of the economy has brought many cooperation opportunities for enterprises. In addition, more disputes also occur due to the violation of the parties’ agreed obligation performance such as: failure to make a payment or deliver goods on time, failure or delay to perform, failure to comply with the agreement, violations of commitments such as non-disclosure agreement, dispute resolution, etc. In some circumstances, violating party even acts to insult, harm the honor, dignity, and prestige of the aggrieved party.

Although the aggrieved party has warned the violating party, there are many cases that violating party ignores or does not collaborate. Therefore, the Lawyers’ Letter of demand plays an important role in requesting the violating party to perform its agreed obligations. However, how is such letter useful? BLawyers Vietnam will present as follows:

1. Benefits that Lawyers’ Letter of demand brings to enterprises

Some of the main benefits of Lawyers’ Letter of demand can be listed as follows:

(i) Firstly, bringing results quickly with time and cost-effective

In fact, many enterprises have used Lawyers’ Letter of demand to send to their partners to require them to perform their obligations. As a result, such violating parties cooperated and quickly performed their obligations. The reason is that the violating party understands that the aggrieved party is aware of the seriousness of the violation and this needs to be resolved so that it requires help from Lawyers. Therefore, the case is resolved quickly with time and cost-effectively instead of settling at a dispute resolution agency.

(ii) Secondly, Lawyers’ Letter of demand can be considered as evidence of the violating party’s non-collaboration

In addition to the effect of warning the violating party to perform its obligations, Lawyers’ Letter of demand also plays as convincing evidence to submit to competent authorities of the violating party does not show collaboration.

More carefully, the requesting party may consider requesting a bailiff office to deliver Lawyer’s Letter of demand to make evidence showing the delivery of its request.

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2. Structure of effective Lawyers’ Letter of demand

Basically, Lawyers’ Letter of demand consists of the following main contents:

  1. Introduction of Lawyers: Providing information of law firm and Lawyers whom the aggrieved party appoints for this case;
  2. Information of violating party: Violating party is a party who has obligation to perform under the agreement;
  3. Purpose of the request: Requesting to perform a certain obligation according to the agreement;
  4. Summarizing the detail of the case and enclosing evidence (i.e. contracts, documents, letters, emails communicating by parties, etc.);
  5. Opinion of Lawyers on the case and obligations of violating party: Pursuant to parties’ agreement and laws, Lawyers will state obligations of the violating party along with legal grounds;
  6. Lawyers’ request: Lawyers will state requests on behalf of the aggrieved party so that violating party can comply within a certain amount of time. Along with that is legal consequences if violating party does not perform within such period.

For example, for a debt collection case, if the debtor is an enterprise, the Lawyer can state the legal consequences that the debtor has to bear such as being requested in a lawsuit, being requested for the initiation of the bankruptcy process, managers of the debtor are prohibited from holding the corresponding position in other enterprises by law, being applied provisional emergency measures such as freezing bank accounts, freezing assets, or having information announced by agencies, press office, etc.

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Should you have any questions about the above contents, please revert to BLawyers Vietnam at consult@blawyersvn.com. We are more than happy to hear from you!

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