A Counter Demand Letter is a critical legal instrument in South African business and civil law, used when receiving a demand letter and having grounds to dispute it while simultaneously making a counterclaim. This document is particularly relevant when the receiving party believes they have valid grounds for their own claim against the original demanding party. The letter must comply with South African legal requirements and typically includes detailed references to the original demand, factual background, legal basis for disputing the original claim, and specifics of the counter demand. It's an important pre-litigation tool that can either lead to settlement negotiations or form the basis for subsequent legal proceedings in South African courts. The document needs to be carefully drafted to ensure it meets all procedural requirements and effectively preserves the counter-demanding party's legal rights while clearly communicating their position and demands.
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1. Recipient Details: Full name, address, and reference numbers of the party who sent the original demand letter
2. Reference Information: Reference to the original demand letter including its date and any relevant reference numbers
3. Background Context: Brief summary of the circumstances leading to the original demand and the basis for the counter demand
4. Dispute of Original Demand: Clear statement disputing the original demand and reasons for the dispute
5. Counter Demand Statement: Explicit statement of the counter demand including specific amounts or actions required
6. Legal Basis: Reference to relevant laws, contracts, or rights supporting the counter demand
7. Payment/Compliance Terms: Specific terms for settlement including payment details or required actions and deadlines
8. Consequences of Non-Compliance: Clear statement of intended legal action if the counter demand is not met
1. Without Prejudice Statement: Used when the letter is part of settlement negotiations and should not be used as evidence in court
2. Interest Calculations: Include when claiming interest on amounts owed
3. Previous Correspondence: Reference to prior relevant communication when there is a history of correspondence
4. Third Party Rights: Include when the counter demand involves rights or obligations of third parties
5. Reservation of Rights: Statement reserving the right to amend the counter demand or take additional legal action
6. Alternative Dispute Resolution: Proposal for mediation or arbitration as an alternative to litigation
1. Annexure A - Supporting Documentation: Copies of relevant contracts, invoices, or other documents supporting the counter demand
2. Annexure B - Calculation Schedule: Detailed breakdown of amounts claimed including interest calculations if applicable
3. Annexure C - Chronology of Events: Timeline of relevant events and correspondence
4. Annexure D - Photographic Evidence: If applicable, photos or visual evidence supporting the counter demand
5. Annexure E - Expert Reports: Any relevant expert opinions or technical reports supporting the counter demand
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