Before asking a lawyer for a demand, agree the scope
You ask for a letter and receive more questions
Imagine you send a lawyer an overdue invoice and ask for a demand. They request the contract, payment history and information about a disputed variation. You expected a quick letter; they need to understand what work you want and what the file involves.
Start by agreeing the scope. Preparing correspondence, advising on a disputed entitlement and starting proceedings are different tasks. Clarify which ones are being requested before assuming a quoted amount covers all of them.
Explain the problem behind the invoice
Provide the contracting parties, amount, payment history and any objection already raised. Include relevant documents, not just the latest invoice. Tell the lawyer about any formal notice or deadline separately.
Do not hide a dispute to make the instruction look simpler. A demand based on an incomplete account may need correction later, and the lawyer cannot assess information you have chosen not to provide.
Ask what the initial work includes
business.gov.au recommends making clear whether your instruction is limited to a letter of demand and notes that legal advice can involve additional cost. Ask the lawyer to explain the particular engagement being offered.
Does the fee include reviewing the contract and reconciliation, preparing a draft for approval, sending it and discussing one reply? These are questions to clarify, not assumptions about what every firm provides.
Understand the cost and approval arrangements
Ask how fees and disbursements will be charged, what could change the estimate and when you will be told. Confirm who in your business can approve additional work. Keep the engagement and cost information with the account file.
Avoid relying on a fee mentioned in an unrelated online example. The actual work can depend on the documents, dispute and jurisdiction. If an item is unclear, ask before accepting rather than trying to infer it from a brief quote.
Decide who handles the response
Agree whether the customer should reply to your business or the lawyer, and how correspondence will be shared. Tell staff who is coordinating the account so they do not send conflicting messages while the lawyer is acting.
Clarify what happens if the customer disputes the debt, proposes instalments or does not respond. A demand instruction should not be treated as automatic authority to commence proceedings or accept a settlement.
Keep the next decision explicit
Review the response with the person responsible for the engagement. Ask what further advice or action is proposed, what it costs and what authorisation is needed. Keep the account reconciliation current as payments or credits occur.
CRP can help discuss the commercial debt problem, while legal services remain with the appropriately qualified professional. Use Report a Debt below to explain the account and whether a lawyer is already involved, so the next conversation starts with a clear division of responsibilities.