AI Generated British Letter Before Action
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This Letter Before Action is sent by John Smith of 123 High Street London SW1A 1AA.

The sender may be contacted by telephone on 020 1234 5678 or by email at john.smith@example.com.

This Letter Before Action is addressed to John Robert Smith of 123 High Street London SW1A 1AA which address has been confirmed as suitable for the formal service of legal documents.

This letter is dated 2023-10-15.

Our reference for this matter is JS/2023/001.

The subject of this dispute is a breach of a web development contract dated 1 May 2023 for the sum of £5,000.

This dispute concerns the defendant's failure to make the final payment of £2,500 due upon completion of the project.

The dispute first arose on 15 June 2023 when the final payment became due but was not made.

The defendant failed to pay for services rendered under our contract despite multiple reminders.

The total amount owed is £5,000 (comprising the unpaid balance of £2,500 plus the return of the upfront payment of £2,500 as damages) and this has caused financial strain on the claimant's small business.

The subject of the dispute involves a written agreement or contract.

The initial event that led to the dispute occurred on 1 May 2023 when the parties entered into the web development contract. The claimant completed the project on time by 15 June 2023 but the defendant has not made the final payment.

Prior to the dispute the claimant and the defendant were parties to a business contract.

The key terms of the agreement stipulated that the claimant would develop a custom website for £5,000 payable in two installments: 50% upfront and 50% upon completion.

The claimant and the defendant entered into a written agreement.

The unpaid balance has delayed the claimant's ability to pay suppliers and has strained the claimant's cash flow potentially affecting the claimant's business operations.

The claimant holds emails or letters contracts or invoices as evidence to support these facts.

The primary legal basis for this claim is breach of contract under the law of England and Wales.

The key terms of the contract that form the basis of this claim are those set out in the agreement dated 1 May 2023 which was made in writing.

The agreement was a web development contract between the claimant a small business and the defendant outlining the scope of work timelines and payment schedule of £5,000 in two equal installments of 50% upfront and 50% on completion.

The specific actions or omissions by the defendant that constitute the breach are that the defendant failed to make the final payment of £2,500 upon completion of the website on 15 June 2023 thereby breaching the express payment terms of the contract.

The breach occurred on 15 June 2023.

This claim includes reliance on implied terms as to the quality of service under the Supply of Goods and Services Act 1982 (though the primary breach is of the express payment obligation).

The key evidence supporting the legal basis includes the signed written contract dated 1 May 2023 email correspondence and confirmation of project completion on 15 June 2023.

The claim is based on the defendant's breach of contract by failing to make the final payment resulting in the claimant suffering loss as a direct result of the breach. The claimant is entitled to damages for breach of contract.

The defendant breached the agreement by failing to make the final payment of £2,500 for the completed web development work despite the project being finished on time and to specification on 15 June 2023.

The breach by the defendant occurred on 15 June 2023.

The type of breach that occurred was failure to pay.

Under the contract dated 1 May 2023 the defendant agreed to pay £5,000 with 50% upfront and 50% upon completion of the web development project.

The work was completed on schedule but the defendant has not made the final payment and has ignored multiple reminders thereby constituting a clear breach of the payment terms.

The breach or wrongdoing is ongoing.

The claimant seeks damages in the sum of £5,000 (being the full contract value as the upfront payment is also claimed back due to total failure of consideration) together with interest on that sum statutory compensation under the Late Payment of Commercial Debts (Interest) Act 1998 and recovery of costs and expenses. This claim is for damages only and the claimant does not seek specific performance. The claimant is not open to other remedies but remains willing to negotiate a settlement.

The claimant does not assert that monetary damages are inadequate for this claim.

The total amount that the defendant is required to pay is £5,000 principal plus interest and compensation. The principal amount owed by the defendant is £5,000.

The principal amount owed is £5,000 for the web development contract dated 1 May 2023.

Interest has been calculated under the Late Payment of Commercial Debts (Interest) Act 1998 at 8% above the Bank of England base rate (assume 5% base rate for total 13% per annum) accruing from 15 June 2023. As at the date of this letter interest totals £432.88 (calculated at the daily rate of £1.78).

Fixed compensation for late payment is £100.00 (applicable for debts over £10,000 but here applied proportionally or as per Act for this debt size; please adjust if needed).

Court fees estimated at £355.00 (for a claim of this value) are claimed separately if proceedings are issued.

No non-monetary elements apply to this calculation. Daily interest will continue to accrue at £1.78 until payment.

The claimant has attempted to resolve this dispute without legal action by sending reminders and chasing payment.

The claimant has engaged in prior written correspondence with the defendant regarding the dispute including: an email reminder sent on 20 June 2023 a follow-up email on 5 July 2023 a formal letter sent by recorded post on 15 August 2023 and a final chaser email on 1 September 2023. Copies of this correspondence are enclosed with this letter.

The claimant demands that the defendant pay the sum of £5,000 plus interest of £432.88 and compensation of £100.00 (total £5,532.88 as at the date of this letter with further daily interest accruing) by bank transfer to the claimant's account (sort code 12-34-56 account number 12345678) within 14 days of the date of this letter. A draft claim form and particulars of claim are enclosed.

The defendant must comply with the demand set out in this letter by no later than 14 days from the date of this letter (i.e. by 29 October 2023).

The defendant is afforded 14 days for compliance with this letter in line with the Pre-Action Protocol for Debt Claims.

If the defendant fails to comply with this letter or respond within the stated 14-day period the claimant will have no choice but to initiate legal proceedings against the defendant in the County Court without further notice. This may result in a judgment in default additional costs and enforcement actions. The claimant will seek to recover all costs on the indemnity basis where possible in accordance with CPR 44 and the court may impose costs sanctions.

Failure to pay the outstanding amount within 14 days will lead to the commencement of legal action including court proceedings where the defendant may be ordered to pay the full claim plus interest legal costs and any associated expenses.

The claimant warns that court proceedings may be commenced if the defendant does not comply with the demands herein.

The claimant notifies the defendant that the defendant may be required to bear the legal costs if the matter proceeds to court.

The specific consequences of non-compliance that the claimant highlights are the commencement of County Court proceedings the requirement to pay the full claim amount plus interest and the recovery of legal fees and expenses.

Interest on the sum owed by the defendant shall accrue from 15 June 2023 under the Late Payment of Commercial Debts (Interest) Act 1998.

The claimant claims interest on the principal amount.

The claimant claims costs from the defendant.

The annual interest rate is 8% above the Bank of England base rate.

Interest is calculated as simple interest.

The basis for claiming interest on the debt is statutory under the Late Payment of Commercial Debts (Interest) Act 1998.

The claimant claims pre-judgment interest in this letter.

The claimant claims post-judgment interest in this letter.