Demand Letter for Breach of Contract in Ontario

A well-drafted demand letter can resolve a contract dispute faster and at lower cost if it is factual, supported by documents, and aligned with a realistic remedies strategy. A poorly drafted letter can create admissions or weaken leverage.

When a demand letter helps

• Non-payment disputes (clear balance owing)
• Performance disputes where cure is possible
• Pre-litigation settlement positioning
• Documenting notice and remedy requirements under the contract

What an effective demand letter includes

1. Contract identification (parties, date, key terms)
2. Breach description with dates and supporting documents
3. Your performance/readiness to perform
4. Clear remedy demanded (pay $X, perform Y by date)
5. Deadline + next steps (negotiation, litigation if required)

What to avoid

• Overstating claims or including speculative damages
• Emotional language, threats, or unnecessary accusations
• Admissions about your own non-performance

See a safe demand letter structure (blog).

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FAQ

Do I have to send a demand letter before suing in Ontario?

Not always, but a demand letter is often helpful. Some contracts require notice and a chance to cure before certain remedies or termination steps.

What should a breach of contract demand letter include?

Typically: the contract details, what happened, dates, supporting documents, the remedy demanded, and a clear deadline for response or payment.

What should I avoid putting in a demand letter?

Avoid emotional language, threats, unnecessary allegations, and admissions. Overstating damages or facts can reduce credibility and leverage.

Should I attach documents to a demand letter?

Often yes, but selectively. Attach key documents that support your position without disclosing unnecessary strategy or sensitive material.

How long should I give to respond?

It depends on urgency, contract terms (notice/cure), and the dispute. A clear, reasonable deadline is often better than an arbitrary one.