DEMAND LETTER - BREACH OF CONTRACT
State of Arizona
[LAW FIRM NAME]
Attorneys at Law
[FIRM ADDRESS]
[CITY], Arizona [ZIP]
Tel: [TELEPHONE]
Fax: [FAX]
State Bar of Arizona No. [BAR NUMBER]
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
[DATE]
[RECIPIENT NAME]
[RECIPIENT TITLE]
[COMPANY NAME]
[ADDRESS]
[CITY, STATE ZIP]
Re: Formal Demand - Breach of Contract
Contract Date: [DATE]
Our Client: [CLIENT NAME]
Demand Amount: $[TOTAL]
Dear [RECIPIENT NAME]:
This firm represents [CLIENT NAME] ("our Client") regarding the above-referenced agreement (the "Contract") between our Client and [BREACHING PARTY NAME]. You have materially breached the Contract, and we demand immediate cure and compensation.
THIS IS A FORMAL DEMAND. UNDER A.R.S. SECTION 12-341.01, THE PREVAILING PARTY IN A CONTRACT ACTION IS ENTITLED TO REASONABLE ATTORNEY FEES. YOUR CONTINUED BREACH WILL RESULT IN SUBSTANTIAL FEE EXPOSURE.
I. BACKGROUND
On or about [DATE], our Client and you entered into the Contract for [DESCRIBE]. Our Client has fully performed. You have materially breached by:
☐ Breach #1: [DESCRIBE BREACH AND CITE CONTRACT PROVISION]
☐ Breach #2: [DESCRIBE]
II. ARIZONA CONTRACT LAW
Under Arizona law, to prevail on a breach of contract claim, a plaintiff must prove: (1) the existence of a contract; (2) breach of the contract; and (3) resulting damages. See Graham v. Asbury, 112 Ariz. 184, 540 P.2d 656 (1975).
III. DAMAGES UNDER ARIZONA LAW
A. Compensatory Damages
| Category | Amount |
|---|---|
| Direct Damages | $[AMOUNT] |
| Consequential Damages | $[AMOUNT] |
| Incidental Damages | $[AMOUNT] |
| SUBTOTAL | $[SUBTOTAL] |
B. Prejudgment Interest
Under A.R.S. section 44-1201, prejudgment interest accrues at 10% per annum:
| Principal | Rate | Period | Interest |
|---|---|---|---|
| $[AMOUNT] | 10% | [DATES] | $[AMOUNT] |
C. Attorney Fees
Under A.R.S. section 12-341.01(A):
"In any contested action arising out of a contract, express or implied, the court may award the successful party reasonable attorney fees."
Arizona courts routinely award attorney fees in contract disputes. If we file suit and prevail, you will be liable for our Client's attorney fees, which will be substantial.
D. Total Demand
| Category | Amount |
|---|---|
| Compensatory Damages | $[AMOUNT] |
| Prejudgment Interest (10%) | $[AMOUNT] |
| Attorney Fees to Date | $[AMOUNT] |
| TOTAL | $[TOTAL] |
IV. STATUTE OF LIMITATIONS
☐ Written Contract: Under A.R.S. section 12-548, actions must be brought within 6 years.
☐ Oral Contract: Under A.R.S. section 12-543, actions must be brought within 3 years.
Our Client's claims are timely.
V. DEMAND
Within [30] calendar days of receipt:
☐ Cure the breach by [SPECIFIC ACTIONS]; AND/OR
☐ Pay $[TOTAL DEMAND AMOUNT]
VI. CONSEQUENCES
Failure to comply will result in immediate litigation in [Maricopa/Pima/Other] County Superior Court or the United States District Court for the District of Arizona seeking:
- All compensatory damages
- Prejudgment interest at 10% per annum
- Attorney fees under A.R.S. section 12-341.01
- Costs and any other appropriate relief
VII. DOCUMENT PRESERVATION
Preserve all documents relating to this matter. Arizona courts impose sanctions for spoliation.
Govern yourself accordingly.
[LAW FIRM NAME]
By: _______________________________
[ATTORNEY NAME]
State Bar of Arizona No. [BAR NUMBER]
Enclosures:
☐ Exhibit A - Contract
☐ Exhibit B - Damage Calculations
cc: [CLIENT NAME]