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When to Get a Lawyer Letter – And How It Can Protect Your Business

A lawyer letter – sometimes called a letter of demand, cease and desist letter, or legal warning letter – is one of the most effective tools for resolving disputes before going to court.

In this article, our legal team explains when to use a lawyer letter, how they work, and examples of situations where they’re essential for protecting your legal rights and business reputation.

Key Takeaways

  • A lawyer letter is a formal written notice prepared by a qualified solicitor.

  • It’s used to demand payment, stop unlawful conduct, or set out your legal position.

  • Lawyer letters often help resolve disputes without the need for court action.

  • Getting legal advice ensures your letter is legally compliant and effective.

  • Prosper Law’s experienced team can draft and send lawyer letters Australia-wide.

Farrah Motley is a well known Australian lawyer

What is a Lawyer Letter?

A lawyer letter is official correspondence prepared by a lawyer that outlines your legal rights, obligations, or demands.

These letters can serve several purposes, such as:

Because the letter comes from a law firm, it signals that you are serious about enforcing your rights – and it often leads to faster resolution.

When to use a Lawyer Letter

You should consider using a lawyer letter when:

1. Informal Attempts Have Failed

If you’ve sent reminders or emails and the other party still ignores you, a formal letter from a lawyer can get results. It shows you’re prepared to take legal action if necessary.

2. You Want to Protect Your Business Reputation

If someone is spreading false or damaging information about your business, a cease and desist lawyer letter can demand they stop immediately – and can deter further defamation.

3. You’re Owed Money

A letter of demand drafted by a lawyer can request payment within a specific timeframe and warn of possible legal proceedings if payment is not made.

4. There’s Been a Contract Breach

If a supplier, client, or contractor has breached a contract, your lawyer can issue a notice of breach or termination letter that complies with the contract’s legal requirements.

5. You Need to Preserve Evidence or Make a Record

Lawyer letters are useful for recording your position in writing – for example, confirming a disagreement or reserving your legal rights. This can be important if the matter later goes to court or arbitration.

Examples of Common Lawyer Letters

Type of Lawyer LetterTypical PurposeExample Situation
Letter of DemandRecover unpaid debtsA client refuses to pay a $5,000 invoice
Cease and Desist LetterStop defamation, IP misuse, or harassmentA competitor copies your logo or makes false claims
Notice of BreachEnforce a contractA supplier fails to deliver goods on time
Employment Dispute LetterClarify rights under employment lawAn employee is wrongfully terminated
Defamation LetterProtect reputationFalse statements are published online

Each letter type requires careful wording to ensure it complies with Australian law and doesn’t expose you to counterclaims, such as defamation or misleading conduct.

Angelique de Jongh is a Senior Paralegal at Prosper Law

Why a Lawyer Letter Can Be So Effective

Many disputes resolve after the first lawyer letter is sent – without the need for court proceedings.

Here’s why:

  • It shows you are legally represented and serious about taking further action

  • It outlines the legal basis for your position clearly and persuasively

  • It often includes a deadline for compliance or payment

  • It can be used later as evidence if the matter escalates

At Prosper Law, our experienced business lawyers know how to draft letters that get results while protecting your legal and commercial interests.

What Happens After Sending a Lawyer Letter

Once the lawyer letter is sent, the other party will typically:

  1. Comply: Pay, stop the conduct, or agree to resolve the issue.

  2. Respond through their own lawyer: Opening the door for negotiation or settlement.

  3. Ignore the letter: In which case, we can advise on the next step, such as lodging a claim in court or tribunal.

Having the letter prepared and sent by a qualified lawyer ensures all follow-up actions are legally sound and strategically aligned with your goals.

Frequently Asked Questions

What’s the difference between a lawyer letter and a normal letter?

A lawyer letter is written and issued by a qualified solicitor. It carries more legal weight and is usually the final step before formal legal action.

Can I write my own letter of demand?

While you can write one yourself, a professionally drafted letter from a lawyer ensures your demand is legally compliant, persuasive, and more likely to get results.

Read our full guide: How to Write a Letter of Demand.

What if the other party ignores the letter?

If the recipient doesn’t respond, we can assist with commencing court proceedings or other enforcement action.

What’s the Difference Between “Without Prejudice” and an Open Letter?

When sending a lawyer letter, you may see the term “Without Prejudice” (WOP) at the top. This means the letter is part of confidential settlement discussions and can’t be used as evidence in court if negotiations fail.

An open letter, on the other hand, is not protected by this rule. It can be shown to a court or tribunal as proof of your position or attempts to resolve the matter.

Knowing whether your letter should be without prejudice or open is crucial – it affects what can be relied on later in a legal dispute.

Learn more: What Does “Without Prejudice” Mean?.

About the Author

Farrah Motley
Director of Prosper Law. Farrah founded Prosper online law firm in 2021. She wanted to create a better way of doing legal work and a better experience for customers of legal services.

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