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Demand Letter Contract Breach Philippines

Demand Letter for Contract Breach Philippines: Free Template & Guide

When and how to demand specific performance or damages for breach of contract under Philippine civil law — with a free template and Civil Code basis.

May 5, 2026 · 8 min read

What Is a Demand Letter for Contract Breach?

A demand letter for breach of contract is a formal written notice from the aggrieved party (or their lawyer) to the breaching party, demanding that they either: (1) fulfill their contractual obligations (specific performance), or (2) accept the rescission of the contract and pay damages. It formally places the breaching party in mora (delay/default) under Article 1169 of the Civil Code, which is the point from which damages and interest begin to accrue.

Civil Code Basis: Articles 1191 and 1169

Under Article 1191 of the Civil Code, the aggrieved party in a bilateral contract may choose between:

  • Specific performance — demand fulfillment of the contractual obligation, with damages
  • Rescission — treat the contract as cancelled and recover what was performed, with damages

Under Article 1169, the debtor is in default (mora) from the moment the creditor judicially or extrajudicially demands fulfillment of the obligation. A demand letter is the extrajudicial demand that triggers mora — meaning damages and interest begin to accrue from the date the letter is received.

Free Demand Letter for Contract Breach Template

Atty. Jose Manalo
Attorney-at-Law
Manalo & Associates Law Offices, 5th Floor, Ortigas Tower, Pasig City

June 1, 2026

JUAN DELA CRUZ
123 Rizal Street, Barangay San Antonio, Quezon City

DEMAND LETTER

Dear Sir/Madam:

We are writing on behalf of our client, Maria Santos, in connection with the Construction Agreement dated June 1, 2025.

a Construction Agreement dated June 1, 2025 for the construction of a two-storey residential building

Our client has referred this matter to our office for appropriate action in view of your failure to complete the construction within the agreed period and the use of substandard materials in violation of the agreed specifications, which has caused damage and prejudice to our client.

Therefore, formal demand is hereby made upon you to cure said breach by rectify the defective works and complete the construction in accordance with the agreed plans and specifications within 15 days from receipt of this notice.

In accordance with law, our office is prepared to take appropriate action in order to protect our client’s interest. We hope for an amicable resolution before our client is constrained to pursue the appropriate legal remedies.

Please give this letter your utmost preferential attention.

This demand is made without prejudice to our client’s right to claim damages, attorney’s fees, costs, rescission, specific performance, injunction, or any other relief under the contract and applicable law.


Very truly yours,

ATTY. JOSE MANALO
Legal Counsel for Maria Santos

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Frequently Asked Questions

When can a party send a demand letter for breach of contract in the Philippines?
A party may send a demand letter for breach of contract when the other party: (1) fails to perform their contractual obligation (e.g., deliver goods, complete a project, pay the contract price); (2) performs defectively or late; or (3) repudiates the contract. Under Article 1191 of the Civil Code, the aggrieved party may demand specific performance or rescission plus damages.
What are the remedies for breach of contract under Philippine law?
Under Article 1191 of the Civil Code, the injured party may: (1) demand specific performance (fulfillment of the obligation) with damages; or (2) rescind the contract with damages. The party may also claim for actual damages, moral damages, and attorney's fees under Articles 2201–2203 if the breach caused loss.
Is a demand letter required before filing a breach of contract case?
While not always strictly required by statute, sending a demand letter before filing is strongly advisable: (1) it formally puts the other party in mora (default), which is when damages begin to run; (2) it demonstrates good faith to the court; (3) it may avoid the expense of litigation if the other party responds favorably; and (4) courts may consider the letter in awarding attorney's fees.
What damages can I claim for breach of contract in the Philippines?
Claimable damages include: (1) Actual damages — losses and lost profits that are the direct consequence of the breach; (2) Liquidated damages — if the contract has a penalty clause; (3) Moral damages — if the breach was in bad faith or caused physical suffering; (4) Exemplary damages — in egregious bad faith cases; (5) Attorney's fees — if stipulated or if the other party's actions compelled you to litigate.
What is the prescriptive period for breach of written contract in the Philippines?
Under Article 1144 of the Civil Code, actions based on a written contract prescribe in ten (10) years from the time the cause of action accrues (i.e., from the date of breach). For oral contracts, the prescriptive period is six (6) years.

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