Module 4 Flashcards
What are the purposes of a Demand Letter?
-the loan may be a demand loan
-out of abundance of caution
-out of courtesy to the debtor
-the Masters of the Court ask for it if it’s a demand loan
What is a Demand Loan?
a type of loan where a creditor gives a debtor a loan and either doesn’t require monthly payments or does, but may also demand the balance be paid in full at any given time
What does a “Without Prejudice” notation mean?
that the info contained in the letter cannot be used or referred to in Court
What factors are considered when a lawyer is deciding which level of Court to commence an action in?
-amount of debt being recovered
-court’s filing fees
-level of work client wants lawyer to complete (what is the client’s budget)
-amount of work client is willing to assist with
-what alternatives to trial are available
-potential costs recoverable at trial
-collection options
Why might a lawyer not send a Demand Letter to a debtor?
if there is a risk that the debtor may destroy or disappear with their assets to avoid seizure
What is the statute that sets out interest rates that a creditor can claim on unpaid debt?
Judgment Interest Act
What info will a legal assistant need to prepare a Statement of Claim?
-blank Statement of Claim
-names of the parties
-loan agreement
-default date
-calculations of the outstanding debt
What info should be included in a Demand Letter?
-who the lawyer represents
-how the debt came to be
-copies of docs that prove debt (i.e. invoices or contracts)
-exact amount of principal and interest owing
-deadline for payment
-method of payment (cheque or bank draft)
-consequences of not making payment
What commencing doc is used for an action in the Provincial Court?
Civil Claim
What commencing doc is used for an action in the Court of King’s Bench?
Statement of Claim
