A Compensation Demand Letter is a critical document in Singapore's legal framework, typically used before initiating formal legal proceedings. It serves as a formal notification of a claim and an attempt to resolve disputes without court intervention. The letter must comply with Singapore's Rules of Court 2021 and pre-action protocols, clearly stating the basis of the claim, quantum of compensation sought, and supporting evidence. When drafting a Compensation Demand Letter, parties must consider limitation periods, documentation requirements, and the specific elements of the claim under Singapore law. The letter should strike a balance between assertiveness and maintaining the possibility of amicable resolution.
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1. Recipient Details: Full name, address, and contact information of the recipient
2. Incident Description: Clear description of the incident or breach that led to the claim
3. Compensation Amount: Specific amount being claimed with breakdown
4. Legal Basis: Legal grounds for the claim including relevant legislation and case law
5. Payment Terms: Expected timeframe and method of payment
6. Consequences of Non-Payment: Clear statement of intended legal action if demand is not met
1. Previous Communications: Reference to prior attempts to resolve the matter and any relevant correspondence
2. Interest Claims: Details of any interest being claimed on the outstanding amount
3. Without Prejudice Section: Protection clause preventing letter contents from being used in court proceedings
1. Evidence Documentation: Copies of relevant contracts, correspondence, or proof of loss
2. Calculations Schedule: Detailed breakdown of compensation amount including any interest calculations
3. Timeline of Events: Chronological listing of relevant events leading to the claim
4. Expert Reports: Any relevant professional assessments or valuations supporting the claim
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