Document background
The Request For Demand Letter is a critical legal instrument in Pakistani business and financial transactions, used when formal payment collection becomes necessary. This document is typically employed when informal attempts to secure payment have been unsuccessful and the creditor needs to escalate the matter through official channels. The letter must comply with Pakistani legal requirements, particularly the Contract Act 1872 and the Financial Institutions (Recovery of Finances) Ordinance 2001. It serves multiple purposes: documenting the formal demand, establishing a timeline for legal proceedings, and providing the debtor with clear information about the outstanding amount and consequences of non-payment. The Request For Demand Letter is often a prerequisite before initiating legal action and can be used in court as evidence of attempted collection.
