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Demand Letter Template
A demand letter is a formal pre-litigation letter asking another party to pay a debt, honour a contract or take specific action within a set deadline. Our free Canadian template follows the without prejudice conventions used in Canadian practice and references the limitation periods that apply under provincial legislation such as the Limitations Act, 2002 in Ontario.
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Pacific Coast Services Ltd.
123 Granville Street, Suite 500, Vancouver, BC V6C 1T2
+1 (604) 555-0101
accounts@pacificcoast.ca
March 25, 2026
Northern Contracting Inc.
456 Jasper Avenue, Suite 300, Edmonton, AB T5J 2N4
RE: FORMAL DEMAND — UNPAID INVOICE / OUTSTANDING PAYMENT
Amount: 12,500.00 CAD
Dear Northern Contracting Inc.,
I am writing to formally demand payment of the sum of 12,500.00 CAD (Canadian dollars) which is currently owed to Pacific Coast Services Ltd.. This demand relates to the following matter:
PARTICULARS OF CLAIM
On January 15, 2026, Pacific Coast Services Ltd. completed management consulting services for Northern Contracting Inc. as detailed in Invoice #INV-2026-0042, dated January 20, 2026, in the amount of $12,500.00 CAD. Payment was due within 30 days of the invoice date, i.e., by February 19, 2026. Despite follow-up communications on February 10 and March 5, 2026, this invoice remains unpaid and is now over 60 days past due.
You are hereby required to pay the full outstanding amount of 12,500.00 CAD within 14 days of the date of this letter. Payment should be made by certified cheque, bank draft, or electronic transfer to the address or banking information specified above. Please reference this demand letter when making payment.
Please be advised that if payment is not received within the specified deadline, I intend to pursue all available legal remedies without further notice, which may include: filing a claim in the Small Claims Court of British Columbia (monetary jurisdiction up to $35,000), or the Superior Court of Justice, as applicable. I may also seek pre-judgment interest as permitted under the Courts of Justice Act, R.S.O. 1990, c. C.43 (Ontario) or equivalent provincial legislation, calculated from the date the amount became payable. Additionally, I reserve the right to claim recovery of legal costs and disbursements incurred in connection with this matter.
Please note that the applicable limitation period for this claim is governed by the Limitations Act, 2002, S.O. 2002, c. 24, Sched. B (Ontario) or the equivalent provincial Limitations Act, which generally provides a basic two-year limitation period from the date the claim was discovered. This demand is served to preserve and enforce all rights within the applicable limitation period.
This letter constitutes a formal demand pursuant to my rights under the laws of the Province of British Columbia and the applicable federal laws of Canada. I trust that this matter can be resolved without the necessity of legal proceedings, and I encourage you to respond promptly and in good faith.
SINCERELY,
Pacific Coast Services Ltd.
Date: ____________________
Method of Delivery: This letter was sent via _____________________ (registered mail / courier / email) on March 25, 2026. A copy has been retained for the sender's records.
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What Is a Demand Letter?
A demand letter is a written communication from one party to another setting out a grievance and demanding a specific remedy, most commonly the payment of money, the delivery of property, the performance of a contractual obligation, or an apology and retraction. In Canadian practice demand letters are usually marked “without prejudice save as to costs” so that they remain inadmissible in evidence on the merits, but can be shown to the court when costs are being assessed.
Courts and regulators in Canada expect parties to attempt to resolve disputes before launching litigation. A properly drafted demand letter is strong evidence that the sender tried to resolve the matter reasonably, and it is often a prerequisite to obtaining indemnity or enhanced costs if the matter later proceeds to court. In Ontario, Rule 49 of the Rules of Civil Procedure, O. Reg. 194/90 encourages early offers and creates cost consequences for parties who reject reasonable offers.
Demand letters are also used to trigger the clock on pre-judgment interest under statutes such as section 130 of the Courts of Justice Act, R.S.O. 1990, c. C.43, to preserve rights before limitation periods expire, and to support applications for summary judgment or default judgment later in the process. A clear, firm, factual demand letter can resolve many disputes without the cost and delay of a formal claim.
What's Covered in This Template
Our demand letter template covers the elements Canadian lawyers and courts expect.
Sender Details
Full legal name, address and contact information of the person or business making the demand.
Recipient Details
Full legal name, corporate registration number and address of the party being asked to pay or act.
Without Prejudice Heading
Standard “without prejudice save as to costs” wording used in Canadian practice.
Background Facts
A concise, chronological summary of the events that give rise to the claim.
Contract or Obligation
Reference to the contract, invoice, promissory note or other basis of the obligation.
Amount Claimed
The principal amount in Canadian dollars, with calculations for interest and any recoverable costs.
Interest Calculation
Contractual or statutory interest, typically referring to section 128 of the Courts of Justice Act in Ontario.
Demand for Payment or Action
Clear, specific demand stating exactly what must be done and by when.
Deadline and Consequences
Deadline for compliance and consequences (litigation, credit reporting, collection) if ignored.
Signature and Contact Information
Signature of the sender, date, and a channel for the recipient’s response.
How to Create a Demand Letter
Follow these steps to prepare a demand letter that maximises your chances of a quick resolution.
- 1
Gather the Facts and Documents
Collect contracts, invoices, delivery notes, emails and any other evidence supporting your claim.
- 2
Calculate the Amount Owed
Work out the principal, interest under the contract or the Courts of Justice Act, and any recoverable costs.
- 3
Set Out a Clear Demand
State precisely what you want: payment in full, return of property, performance of a contract or retraction of a statement.
- 4
Set a Reasonable Deadline
Give the recipient a realistic window (often 10 to 14 business days) and state what will happen if the deadline passes.
- 5
Send and Keep Proof of Delivery
Send by email and by registered mail or courier, and keep tracking records in case you need to prove receipt.
Why Doxuno documents are different
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Templates carrying statute references are continuously updated as the law changes. Your document always reflects the current legal framework.
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Legal Considerations
Several areas of Canadian law shape the use and effect of demand letters.
This template is for informational purposes only and does not constitute legal advice. Consult a qualified lawyer in your province for advice specific to your situation.
Reviewed for Canadian law
Limitation Periods
Under section 4 of the Limitations Act, 2002, S.O. 2002, c. 24, Sched. B, most civil claims in Ontario must be brought within two years of discovery. BC’s Limitation Act, S.B.C. 2012, c. 13 sets a similar two-year basic period. Sending a demand letter does not suspend these limitation periods, so always track the clock and commence a claim in time if the recipient does not comply.
Interest and Costs
Sections 128 and 129 of the Courts of Justice Act, R.S.O. 1990, c. C.43 govern pre-judgment and post-judgment interest in Ontario, and section 130 allows the court to adjust those rates. Most Canadian provinces have similar provisions. A demand letter should calculate interest at the contractual rate if one is specified, or the statutory rate if not.
Small Claims and Superior Court
Claims of up to C$35,000 in Ontario (as of current limits) are dealt with in the Small Claims Court under the Courts of Justice Act. Larger claims must be commenced in the Superior Court of Justice. Knowing the forum helps you frame a realistic demand and explain the likely consequences of ignoring the letter.
Without Prejudice Privilege
The without prejudice rule protects genuine settlement communications from being used in evidence on the merits. Marking a letter “without prejudice save as to costs” preserves that privilege while allowing the court to see the letter when ruling on costs, following the Ontario Court of Appeal’s guidance in cases such as Hansraj v Ao.
Frequently Asked Questions
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