The demand concerns an account you thought was already settled
Assess fresh demand against alleged prior settlement scope and performance rather than assuming discussion resolved all claims.
Corporate Recovery Partners
01 / 06
The letter brings back a supposedly finished dispute
A hypothetical business receives a lawyer's demand for an account the owner believes was settled months earlier. The file contains a proposed discount and a payment, but the owner cannot immediately find the final terms. Gather the actual record before responding that the matter is closed. A remembered conversation may not explain the scope or conditions of the arrangement.
Find the proposals, acceptances, signed documents if any and subsequent payment evidence. Keep the dates and attachments intact. Identify whether a later version replaced an earlier offer. Do not present a draft marked for discussion as the final agreement simply because its wording supports the business's preferred position.
Business.gov.au's contract guidance recommends clear terms and understanding obligations. Ask the lawyer to compare the claimed amount with what the settlement actually addressed and whether relevant conditions were performed. This article does not determine whether an agreement was formed or whether the demand is barred. Those questions depend on the documents and circumstances.
In the hypothetical example, a bank receipt may show money moved without establishing which claims were released. Give the adviser the remittance and any accompanying message. Keep payment allocation separate from the legal effect of the settlement. Avoid assuming that any payment described internally as settlement resolved every invoice or related obligation.
Provide the demand and the settlement file promptly and confirm the next action. Do not ignore the letter while searching for records or assume a request for time has been accepted. If the sender appears to lack relevant documents, ask the lawyer how to provide a focused response without making unnecessary admissions or disclosing material inappropriately.
Retain the advice and any response with the account records. CRP can help organise the commercial history. The objective is to establish what was actually resolved, what was performed and what the new demand concerns, rather than relying on an old note that simply says finished.
