Letter of demand template (Uganda)
In brief
A precedent letter of demand putting the debtor on notice and creating a record before litigation.
When to use this
When a debt is overdue and you want to demand payment before suing.
When a bespoke document is needed instead: Where an insolvency-based statutory demand is the right tool — use that for an undisputed, larger debt.
The template
A precedent only. Replace every [PLACEHOLDER] with your own details; it contains no real party data. Have it reviewed before use.
Heading
[CREDITOR / ADVOCATE LETTERHEAD]
[DATE]
[DEBTOR NAME], [ADDRESS]
BY [hand / registered post / email]
Subject
RE: DEMAND FOR PAYMENT OF UGX [AMOUNT]
1. The debt
1.1 You owe our client [CREDITOR] the sum of UGX [AMOUNT] under [invoice no. [NO] / the agreement dated [DATE] / goods supplied / services rendered], particulars of which you hold.
1.2 The sum fell due on [DATE] and remains unpaid despite [reminders dated [DATES]].
2. Demand
2.1 We now DEMAND that you pay the full sum of UGX [AMOUNT] within [DAYS] days of the date of this letter, to [account / details].
3. Consequences of non-payment
3.1 If payment is not received within that time, we are instructed to commence legal proceedings against you without further notice, and to claim the debt together with interest at [RATE] and the costs of recovery.
3.2 [Where appropriate: we may also issue a statutory demand under the Insolvency Act, which can found insolvency proceedings.]
4. Opportunity to resolve
4.1 If you dispute the debt or wish to propose terms, contact us in writing within the same period.
Execution
Yours faithfully, ____________ (Creditor / Advocate) Contact: [PHONE / EMAIL]
Drafting notes
- Be clear
- State the amount, the basis, the due date and a firm deadline to pay.
- Mind limitation
- Check the debt is not time-barred before demanding or suing (Limitation Act).
- Keep proof
- Send by a traceable method and keep proof of delivery — the letter is evidence of the demand.
- Tone & remedy
- Keep it firm but accurate; flag interest, costs and (for larger undisputed debts) a possible statutory demand.
Execution requirements
- The creditor or advocate signs and sends by a traceable method.
- A demand is not a court process but creates a useful record and can trigger interest/costs claims.
- Sue within the limitation period if the demand is ignored.
Governing law & citations
Governed by the general law of contract and the Limitation Act, Cap. 290 (2023 Revision).
- Limitation Act, Cap. 290 (2023 Revision).