There are many situations and scenarios in which one partner in a business or company wants something from some other partner. In this case, the partner who needs something from the other partner is required to make a formal request to the other partner so that the other partner receives a formal notification and decide if he wants to go with it or not. It is also very important to make a formal request because this way the demanding partner can give reference to the partnership agreement or a specific clause in the agreement in which the other partner agreed for the contribution asked by other partners. This process is done by the formal demand for contribution letter.
Brief description of Demand Letter for Contribution:
You can’t find this demand letter any important for your business if you are thinking small. Suppose you start a small company with your friend and as you are very close and only two partners in the small business, there is no need for formal communication but you can ask your partner anything verbally while sitting with him or having lunch with him. But, on the contrary when it comes to big corporations that have business worldwide and include dozens of important partners, you can’t just ask any partner to contribute according to the clauses of the agreement but you need to make a formal request with this demand for contribution letter.
This is also very important in case the partner denies contributing and indirectly, violates the agreement so that you can take legal action against him on the basis of your formal demand letter. In this sense, you can understand the needs and uses of this demand for contribution letter both for business and legal purposes. This is a very simple and easy letter to write. You just need to include your demand very clearly and precisely along with the reference to the specific clause of the partnership agreement according to which, the receiving partner agreed to make the contribution on demand.
Key Elements to include in the Demand Letter for Contribution:
- Name of the partner who is writing the demand letter with complete address
- Name of the partner in the company who will receive the letter with complete address
- Name of the company in which the partners work or the company that the partners own
- Date when the demand is being made by one partner to another
- Details of the contribution that one partner is demanding from the other
- Agreement of other partners in the decision of the contribution (if applicable in case of multiple partners)
- Consent of the other partners, general partner and board of directors of the company for the contribution demand
- Reference to the agreement and particular clause of the partnership agreement
- Time frame for the receiver to respond to the demand for contribution letter
- Signature of the partner who is demanding for the contribution
Here is preview of a Free Sample Demand Letter for Contribution created as fillable PDF Form,
Here is download link for this Demand Letter for Contribution,