How to Write a Demand Letter in Northwest Territories
Do You Need a Demand Letter Before Filing?
A demand letter is not a mandatory prerequisite for filing a Statement of Claim (Form 1) in the Territorial Court of the Northwest Territories — unless your contract specifically requires written notice before legal action. But sending one is standard practice for three reasons:
- It often resolves the dispute. Many debtors pay once they realize you are serious enough to put it in writing.
- It establishes a reference date for pre-judgment interest. Under the Judicature Act, pre-judgment interest can run from the date you gave written notice of your claim.
- It demonstrates good faith. The Territorial Court judge at mandatory mediation will see that you tried to resolve the matter before invoking court resources.
What to Include
A demand letter does not need to be long. One page is usually enough. It should contain:
Your identity and contact information. Full name, mailing address, phone number, and email.
The debtor's identity. Use the correct legal name. If you are writing to a corporation, address the letter to the registered entity name as shown on the GNWT Corporate Registries (CROS) system — not a trade name or the owner's personal name.
A concise summary of the facts. State the date the work was done, the goods were delivered, or the agreement was made. Identify the contract or transaction and explain what went wrong.
An itemized breakdown of the amount owed. List the principal debt, any contractual interest, and out-of-pocket costs. Do not inflate the amount or add speculative damages.
A reasonable deadline. Give the debtor 10 to 14 business days to pay. Shorter deadlines can seem aggressive; longer ones lose urgency.
Payment instructions. Tell the debtor exactly how to pay — bank transfer, certified cheque, money order, or another method.
A clear consequence. State that if payment is not received by the deadline, you will file a civil claim in the Territorial Court of the Northwest Territories.
What Not to Include
- Threats of criminal prosecution. Keep the letter focused on the civil claim; do not threaten criminal prosecution to obtain payment.
- Inflated amounts. Only claim what you are actually owed. Adding punitive amounts or "fees" that are not in the contract undermines your credibility.
- Emotional language. Keep the tone factual and professional. The letter may end up as an exhibit at mediation or trial.
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How to Deliver the Letter
Send it by registered mail or courier so you have proof of delivery. Keep a copy of the letter and the delivery receipt — you may need both as evidence. Email is acceptable as a backup, but a physical letter sent by tracked mail carries more weight.
If the debtor is in a remote NWT community, allow extra time for postal delivery before the payment deadline kicks in.
If the Demand Letter Does Not Work
If the deadline passes without payment or a reasonable response, you are ready to file Form 1 at the Territorial Court registry. The $55 filing fee, combined with the demand letter you already sent, starts the formal legal process.
For a demand letter template and a filing-readiness checklist, see the NWT Small Claims Filing Guide.
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