Letter of Demand: Breach of Contract (Australia)

Updated on 22 August 2026

In Australia the document you send when the other side has not performed is called a letter of demand. Its job is to set out the claim clearly enough that the other side can respond, demand a specific remedy by a specific date, preserve every right you have not yet exercised, and create evidence that you gave notice. Done well it usually resolves the matter; done badly it hands over a deadline you never agreed to or waives something you did not know you had.

The template this replaces was written as an American attorney's letter on a law-firm letterhead, opening "I am writing on behalf of my client". Most people who need this document are the contracting party, not a lawyer, and sending something that looks like it came from a firm when it did not is a real risk. This version is written to be sent by the party itself, with an optional solicitor version, and it separates what the contract says about remedying a breach from what you are choosing to allow.

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Letter of Demand — Breach of Contract

Date:
From:: , (ABN ),
To:: ,
Notice address used:
Delivered by:
Basis of claim:
Contract:: dated , reference

Dear ,

This is a letter of demand about a breach of the contract identified above. It is sent to the notice address the contract specifies, by the method stated, by me as . Please read it carefully and respond by the date at the end.

1. The Obligation and the Breach

The contract required the following: Performance was due on .

What actually happened:

Amount claimed: . Other loss and cost, so far as it can be quantified today:

2. Our Own Performance

For completeness: If you say any obligation of ours is outstanding, please identify it in writing with particulars so it can be dealt with rather than asserted generally.

3. What We Require

We require:

OptionalThe contract has a cure periodOn: the deadline relies on the contract's cure clause. Off: you allow a reasonable period and say so.

Under the of the contract you have the opportunity to remedy this breach, and we require it to be remedied by in accordance with that clause.

If the breach is not remedied by that date:

OptionalClaim contractual interestRely on the interest rate the contract sets.

4. Documents

We enclose or attach the following: Please tell us promptly if you need any further document in order to respond, and please provide the documents you rely on with your reply.

OptionalOffer to discuss or mediateInclude an ADR proposal, supporting a genuine steps statement.

5. Resolving This Without Proceedings

We would prefer to resolve this without court proceedings and are willing to discuss the matter or to take part in mediation. Please say in your reply whether you are willing to do so and what form you propose. We will rely on this letter and your response, or the absence of one, as evidence of the genuine steps taken to resolve the dispute if proceedings become necessary.

6. Reservation of Rights

Nothing in this letter, and no delay, discussion or indulgence on our part, waives or limits any right or remedy available to us under the contract or at law, including any right to terminate, to suspend performance, to withhold payment, to claim damages, interest and costs, or to commence proceedings. All rights are expressly reserved.

OptionalInclude a without-prejudice offerAdd a separately labelled settlement proposal.

7. Response

Please respond in writing by to , saying what you will do and by when. If we receive no substantive response by that date we will proceed on the basis set out above.

Yours faithfully,

Signed

Date:

Genuine steps: the letter is part of the court process

For proceedings in the Federal Court and the Federal Circuit and Family Court, the Civil Dispute Resolution Act 2011 requires an applicant to file a genuine steps statement setting out the steps taken to try to resolve the dispute, or why none were taken. State courts and tribunals have their own pre-action expectations, and many contracts contain their own dispute-escalation clause.

The practical consequence is that a well-drafted letter of demand is not just pressure — it is the evidence that you took a genuine step. This template therefore states the claim, invites a response by a date, and offers to discuss or mediate, which is exactly the material a genuine steps statement is built from.

Particulars beat adjectives

A letter saying performance has been "completely unacceptable" achieves nothing. A letter saying the contract required delivery of 400 units of part 21-B by 14 July, that 260 arrived on 22 July and 41 failed inspection, is a document the other side has to answer.

This template asks for the obligation, the date it was due, what actually happened and the loss so far. That structure fixes the facts while they are fresh, and it forces you to check that you have performed your own side — which is the first thing the other party will raise.

Do not accidentally lose a right

Two traps sit in this kind of letter. Where a breach is serious enough to give a right to terminate, a party who keeps performing and pressing for performance may be treated as having elected to affirm the contract and lost that right. If terminating is a live option, demand performance without unequivocally committing to continue.

The second is waiver by conduct. A short reservation-of-rights sentence — that nothing in the letter and no indulgence waives any right or remedy — costs nothing and closes off an argument that giving extra time gave something away. This template includes it as standard.

Consumer guarantees, interest and time limits

If you are a consumer or a small business buying goods or services, the Australian Consumer Law guarantees may give you rights independent of the contract, and a letter of demand can rely on them as well as on the contract terms. This template lets you say which you are relying on rather than blurring the two.

On interest, rely on the contract rate where there is one; otherwise pre-judgment interest is a matter for the court rules and this template does not invent a rate. And check the limitation period: it is six years for most contract claims in most States and Territories, but shorter in the Northern Territory, and correspondence does not stop the clock. Send by a method that produces a record, because you may need to prove the date.

Part-by-part guide to the letter

Heading and basis: Marks the letter as a letter of demand and records whether you rely on the contract, consumer guarantees, or both.
Sender and recipient: Your details and the recipient's contract notice address, not just the person you usually email.
Contract identification: Contract name, date and reference so there is no doubt which agreement is in issue.
Service statement: How the letter was delivered, so the date of notice can be proved.
Particulars of the breach: The obligation, the date due, what actually happened and the loss so far.
Your own performance: Heads off the standard "you breached first" reply and asks for particulars of any counter-allegation.
What you require, and by when: The remedy sought and the deadline, under the contract's cure clause or as a reasonable period you allow.
Interest: Optional. The contract rate where there is one, without inventing a statutory figure.
Consequences: What you will do if the deadline passes — accurately, and only what the contract and the law permit.
Genuine steps and ADR: An offer to discuss or mediate, which supports a genuine steps statement if proceedings follow.
Documents: The documents you rely on and enclose.
Reservation of rights: Confirms that allowing time waives nothing.
Without-prejudice offer: Optional and separately labelled, so a settlement proposal does not undermine the demand.
Response required: A named contact and a date, so silence becomes a documented choice.

Australian points to check before sending

Treat the letter as a genuine step
An applicant in the Federal Court or the Federal Circuit and Family Court must file a genuine steps statement setting out what was done to try to resolve the dispute. A clear demand plus an offer to discuss is the standard first step.
Civil Dispute Resolution Act 2011 (Cth)
Check your own contract's dispute clause
Many commercial contracts require notice, escalation or mediation before proceedings. Follow that process, because skipping it can delay or derail a claim.
Identify whether consumer guarantees apply
The Australian Consumer Law guarantees can give rights independent of the contract terms, and they cannot be excluded. Say whether you rely on the contract, the guarantees, or both.
ACCC — consumer guarantees
Use the contract's notice method
A notice given otherwise than as the contract requires may be ineffective. Use the specified address and method, and keep proof of delivery.
Do not invent an interest rate
Claim the contract rate if there is one. Pre-judgment interest otherwise depends on the court rules of the relevant jurisdiction, so do not state a figure you cannot support.
Watch the limitation period
Most States and Territories allow six years for a simple contract claim, with the Northern Territory shorter. Correspondence does not extend it, so take advice if time may be short.
Avoid electing to affirm the contract
If the breach may give a right to terminate and you might want to use it, do not unequivocally commit to continuing performance while you press for a remedy.
Do not imply a lawyer wrote it
Send the letter in your own name unless a lawyer is actually acting. A letter presented as coming from a firm when it is not is misleading and easy to expose.

How to complete this letter

Check the notice and dispute clauses. Find the contract's notice address and method and any escalation requirement, and follow them.
Set out the breach. Enter the obligation, the date it was due, what happened and the loss so far.
Choose the deadline basis. Use the contract's cure period if there is one; otherwise set a reasonable period and say that is what you are doing.
Say what you rely on. Record whether the claim rests on the contract, on consumer guarantees, or both.
Add the ADR offer and enclosures. Offer to discuss or mediate and list the documents you enclose.
Send it with proof. Download, send by a method that produces a delivery record, keep the receipt and diarise the deadline.

Frequently asked questions

Do I need a lawyer to send a letter of demand?

No. A party can demand performance itself, and this template is written to be sent in your own name. Use a lawyer where the amounts are significant, the terms are genuinely contested, the limitation period may be close, or termination is on the table. What you should not do is dress a self-written letter up as a law firm's correspondence.

How long should I give them?

If the contract sets a cure period, use it. Otherwise a period that is genuinely reasonable for the obligation involved — often 14 to 28 days for commercial performance, shorter where the contract is time-critical — and say in the letter that you are allowing a reasonable period rather than claiming a contractual entitlement.

What is a genuine steps statement?

For proceedings in the Federal Court and the Federal Circuit and Family Court, an applicant must file a statement setting out the steps taken to try to resolve the dispute, or explaining why none were taken. A clear letter of demand that invites a response and offers to discuss the matter is the ordinary first genuine step, which is another reason to write it properly.

Can I claim interest?

Claim the contract rate if the contract has one. Beyond that, pre-judgment interest depends on the rules of the court where a claim would be brought, so this template does not state a statutory figure. Keep the principal and any interest claim separate so the numbers can be reconciled later.

Should I mention the Australian Consumer Law?

If it applies, yes, and say so explicitly. The consumer guarantees can give you rights independent of the contract terms and cannot be excluded by a contract. This template asks you to record whether you rely on the contract, the guarantees, or both, because they lead to different remedies.

How should I send it?

By the method the contract requires, and by a route that produces a record — registered post, a courier with signature, or email with a retained delivery confirmation. You may later need to prove the date, and that is far easier with a receipt than a recollection.

What if they say I breached first?

That is the most common response, which is why this letter includes a short confirmation of your own performance and asks for particulars of any counter-allegation. Reply in writing, keep it factual, and do not stop performing your own obligations on the strength of an accusation without checking your termination and suspension rights.

Related templates

Disclaimer

This template and guide are general information about Australian practice, not legal advice, and nobody has reviewed your dispute. Limitation periods, court rules and termination rights differ between States and Territories and are unforgiving; if the amount matters, get advice before you send or rely on this letter.