The drawer's reply to a demand notice sent after a cheque was returned unpaid.
TO: __________ __________
FROM: __________ __________
Dear Sir / Madam,
1. THE NOTICE RECEIVED
2. THE SENDER'S POSITION
3. REPLY TO THE DEMAND
3.1 The Sender does not admit that any amount is due to the Recipient, and denies that the demand in the Notice is payable. Everything in the Notice that is not expressly admitted in this reply is denied.
3.2 The Sender reserves the right to rely on every defence available in law, including that the cheque was not given in discharge of a legally enforceable debt or liability.
4. WHAT THE SENDER ASKS
4.1 The Sender asks the Recipient to withdraw the demand in the Notice and not to proceed against the Sender on it.
4.2 The Sender asks the Recipient to keep safe, and to produce if a complaint is filed, the original cheque, the bank's return memo, and every document the Recipient relies on to show the debt or liability claimed.
4.3 If the Recipient files a complaint, the Sender will defend it and will ask for such costs and compensation as the law allows.
4.4 Nothing in this reply is an admission, and the Sender's rights and defences are fully reserved.
5. SERVICE OF THIS NOTICE
6. JURISDICTION AND REPLY
Yours faithfully,
ACKNOWLEDGEMENT OF RECEIPT(for use where this notice is delivered by hand)