Legal issues
Possible issues include wrong debtor identity, contractual scope, non-performance, defects, delay, variation, payment already made, set-off, counterclaim, limitation, interest and costs.
Admissions should be deliberate. If part of the debt is genuinely due, a commercial proposal can sometimes narrow the dispute without conceding the remainder.
Evidence that matters
Preserve the demand, contract, terms, invoices, payment records, project files, delivery records, complaints, remedial work, emails, messages and documents supporting any loss or counterclaim.
Reasonable lines of enquiry
Map each allegation in the demand to the evidence. Confirm whether the claimant has the correct contracting party, whether all invoices were due, whether performance was accepted and whether any contractual notice or ADR clause applies.
Consider whether a without-prejudice settlement proposal, document exchange or mediation could resolve the matter before costs escalate.
What happens next
The business sends a reasoned response within the applicable timeframe. The parties may exchange documents, negotiate or use ADR. If unresolved, the claimant may issue proceedings and the defendant then has formal court deadlines to acknowledge and defend.
Immediate steps
Record the deadline, stop informal responses, gather the full contract file and identify which parts of the claim are admitted, disputed or require clarification.
What should you send us?
Send the letter before action, contract, invoices, account history, complaints, correspondence, payment records and evidence supporting every defence or counterclaim.