6.05.2017

Do You Need a Lawyer to Write a Demand Letter for Payment?

Not in every case the Buyer admits to being wrong or responsible for payment as agreed in contract. They may plead substantially contractual breach of the Seller or insist on the null and void of contract for their non-performance of payment. For strengthening arguments, the Seller have to base on legal grounds and evidences to request for payment under contracts. Even if the Buyer is not in good faith, the Seller has right to claim an interest on delayed payment. In a easy case and having a small total amount of payment, you can write a demand letter by yourself. Contrarily, if your case is complicated with a lager damage, an attorney’s advice is probably necessary.
Legal grounds for request the Buyer/ Debtor conforms to the payment obligation as follows:
(i) Contract, purchase order (signed by legal representative of authorized representative);
(ii Applicant laws which is referred in the contract;
(iii) International commercial customs which is referred in the contract: Incoterm, UCP, ISBP (International Standard Banking Practice), etc.

It should be emphasized that the right to claim for payment of the Seller must accompany by their obligations as per contract. If the Seller fails to conform with obligations such as: quality of goods, quantity of goods, time of delivery, manner of delivery, etc that cause miss-achievement of contract purpose for the Buyer, the Seller might disable to claim for payment by laws.
Generally, the Buyer shall make payment punctually with method agreed by parties. Accepting request for postponement of payment performance from the Buyer without any conditions shall be deemed that the payment performance is timely made. As a result, the Buyer shall not be fined for breach. It should be advised that all notifications and responses to acceptance or reject the request for postponement of payment performance must be made in written form as fax, email, mal or instead of oral forms. The more carefully retain evidences, the more effective your demand letter becomes. Then, you can attach them to your demand letters for threatening the Buyer/ Debtor.
In many case, dispute settlement provision provides that “Should there be any dispute as for contract is concerned and this cannot be resolved amicably, by negotiations between parties or through mediation of professionals, the Court of Vietnam shall have exclusive jurisdiction”. In that case, the Seller shall notice the Buyer by a demand letter after the payment term is overdue. A demand letter should be clearly expressed your intention of legal actions.
There are some suggestions that you can follow related to writing a demand letter on the first or second times. If your demand letters do not effectively work, you should request supports from lawyers as soon as possible. They have enough experience in both legal knowledge and technical language skills to press the Buyer/Debtor for payment. Moreover, ANT Lawyers has many experienced professional experts to collect information about finance, legal status… prior to give legal advice. Besides representing our Clients to follow up and negotiate with the Debtor on their action plan to pay the Debt, we can support them to file lawsuits, request the Court of Vietnam to enforce judgments, or submit written requests for initiation of bankruptcy process.


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