How to write a demand letter before you sue in Ontario

Before you start a case in Small Claims Court, it is a good idea to send a demand letterDemand letterA letter that tells someone what they owe you, why, and by when you want it paid, before you go to court. It often settles the dispute and shows you tried.Close definition of Demand letter. It is a short, firm letter that says what the other person or business owes you, why, and by when you want it paid.

A good demand letter does three jobs:

1. It gives the other side one last, clear chance to pay.
2. It shows you are serious and organized.
3. It creates a record that you tried to solve the problem before going to court.

Sometimes, a demand letter is all it takes.

Before you write

Gather what you need:

• the other side's correct legal nameLegal nameThe official name of a person or business. For a person, it is the name on government ID. For a business, it may be different from the name on its sign or website.Close definition of Legal name and address
• your timeline of what happened, in date order
• the documents that back you up: contract, invoice, receipts, messages, photos
• the exact amount you are owed, with a breakdown

Also check your limitation periodLimitation periodThe time limit to start a court case. In Ontario it is generally 2 years from when you discovered your claim, under the Limitations Act, 2002. If you miss it, you may lose the right to sue.Close definition of Limitation period. In Ontario, it is generally 2 years from when you discovered (a claim)Discovered (a claim)The day you knew, or should have known, that you had a loss caused by someone else and that a court case was a fitting way to fix it [VERIFY: exact legal test]. Your 2-year limitation period generally starts on this day.Close definition of Discovered (a claim) your claim (Limitations Act, 2002). If you are close to that deadline, do not let the letter delay you. A letter does not stop the clock. Our limitation period estimator can help.

What to include

1. The basics at the top

Your name and contact details, the date, and the other side's legal name and address. Add a short subject line, such as "Demand for payment: unpaid invoice #1042."

2. What happened, in a few sentences

Keep it short and factual. For example:

On March 4, 2026, you hired me to repaint your office for $3,200. I finished the work on March 18, 2026. I sent you invoice #1042 that day. You have not paid it.

Stick to facts you can prove. Leave out insults and guesses about their motives.

3. What you want

State the amount you claim and what it is for. If it is more than one item, list each one and explain how you worked out the total.

4. A clear deadline

Give a specific date to pay, such as a date a week or two away. This is your own deadline, not a court rule, so pick something reasonable.

5. How to pay

Say how you will accept payment: e-transfer, cheque or another method. Make it easy for them to say yes.

6. What happens if they do not pay

Say calmly that if you are not paid by the deadline, you plan to start a claim in Small Claims Court without further notice. Do not make threats you will not carry out, and never threaten criminal charges or public shaming to get paid.

7. Copies of key documents

Attach copies, never originals, of the invoice, contract or other key proof.

Keep the tone right

Imagine a judge reading your letter one day, because one may. Aim for firm, polite and brief. One page is ideal. Two is the most you need.

Good: "Please pay the full amount of $3,200 by May 1, 2026."

Not helpful: "You are a liar and a cheat, and you will pay for this."

How to send it

Use a method you can prove later:

• email, with a read receipt if you can
• registered mail or a courier that gives you a tracking record
• both, for extra peace of mind

Keep a copy of the letter and your proof of sending.

If they answer

If they offer to pay part, or to pay over time, consider it. A fair settlementSettlementAn agreement between the parties that ends the dispute, usually with one side paying or doing something. A settlement means no trial is needed.Close definition of Settlement now can save months. Get any deal in writing: the amount, the dates and what happens if a payment is missed.

If they do not answer

If your deadline passes with no payment, you are ready for the next step. Read Before you sue and Starting a claim (Form 7A) to see what comes next. Whether a demand letter is required for your kind of claim is something to confirm [VERIFY], but it is a smart step either way.