A demand letter is a written document that makes a formal request for some damage. It is typically used in situations where a party is seeking to resolve a dispute or obtain compensation for some harm or injury that has been suffered. Demand letters are often sent by individuals or businesses to request payment for a debt, to seek compensation for damages, or to request that an action be taken by the recipient. They may also be used to request the return of property or to seek a resolution to a problem. Demand letters are usually the first step in a formal legal process and are often used as a way to try to avoid the need for litigation.