Formal demand letter and envelope

Demand Letter for Breach of Contract: Is It Required Before Filing a Case?

Quick answer: A written demand is not required in every contract dispute, but it is often important. Under Article 1169 of the Civil Code, an obligor generally incurs delay after the obligee makes a judicial or extrajudicial demand for performance. The law also recognizes important exceptions.

Related: How to handle civil disputes in Philippine business deals — a step-by-step process and forum guide

Why demand matters

A demand can establish that an obligation was already due, the creditor requested performance, the debtor failed to comply, and default or delay began. It can also document the dispute before litigation and give the other party a final opportunity to cure. Sometimes the rules make a specific demand a condition for suing: a landlord who sues a non-paying tenant for unlawful detainer must first serve a demand to pay and vacate under Rule 70.

When demand may be unnecessary

Article 1169 recognizes situations where demand is unnecessary, including when the obligation or law expressly provides otherwise, when timely performance was a controlling motive for the contract, or when demand would be useless because performance has been rendered impossible. Delay is only one of the four kinds of breach under Article 1170; the guide on what counts as a breach of obligation explains how it differs from fraud, negligence and contravention of the terms.

Is demand always required before Article 1191 resolution?

No blanket rule applies to every case. Whether demand is required can depend on the nature of the breach, the need to establish default, contractual notice provisions, cure periods, and whether an Article 1169 exception applies.

What should a demand letter contain?

  1. Identify the parties and contract.
  2. State the exact obligation that became due.
  3. Describe what remains unperformed.
  4. State what performance, payment, or cure is demanded.
  5. Give a reasonable deadline when appropriate.
  6. Identify the remedy that may be pursued if the breach is not cured.
  7. Use a delivery method that can later be proved.

How should the demand be delivered?

Use a method that creates reliable evidence of delivery or attempted delivery, such as registered mail, courier tracking, personal service with acknowledgment, email, or authenticated electronic communications. Preserve both the demand and the proof of transmission.

Does a demand letter extend the filing deadline?

Do not assume that correspondence indefinitely preserves a claim. Demand may be relevant to accrual or interruption in particular situations, but the applicable prescriptive period and accrual date should be analyzed independently.

Evidence checklist

  • Signed demand letter and attachments
  • Courier receipt or registered-mail proof
  • Email headers or delivery confirmation
  • Messages acknowledging receipt
  • Reply or refusal from the other party
  • The underlying contract and proof that the obligation was due

Related CivilLaw.ph guides

For the broader remedy question, see Can I Cancel a Contract if the Other Party Does Not Perform?. Also see Article 1191 resolution, specific performance vs resolution, and how long you have to file a contract action.

Frequently asked questions

Does a lawyer have to send the demand?

No general Civil Code rule requires every demand to come from a lawyer.

Can an email or message count as demand?

Potentially, if the demand is sufficiently clear and its sending and receipt can be proved. The contract and circumstances still matter.

What if the contract says no demand is necessary?

That language can be important, but the exact clause and applicable law should be reviewed before relying on automatic default.

This guide is general legal information and not a substitute for advice about a particular contract or demand.