The formal notice is a letter of "Last Chance" that can be sent to a recipient. Prepared by you, and served by bailiff, this document invites a debtor, or any other person or company to take note and act in a short time to regularize a situation according to your requests.
"The letter of formal notice allows you to explain to the other person what you are criticizing formally and accurately. It also allows you to explain to her what she can do to resolve the situation to prevent you from pursuing her.
Warning! Whether before or after sending the letter of formal notice, you must consider other means to resolve the dispute before going to court. This may be, for example, negotiation or mediation.
In the vast majority of cases, no! The law requires you to send a letter of formal notice (or a written notice that resembles it) in specific cases only. For example:
When a seller wants to cancel the sale of a building, he is sometimes obliged to send a formal notice to the buyer. If he does not do so, he can’t take back his property.
When you have a hidden defect or want to sue a municipality for property damage, you must send a notice to the person or municipality concerned. This notice simply serves to inform them of the situation that is causing you problems. If you do not send this notice or send it too late, you may lose the right to compensation.
If you are not sure that sending a letter of formal notice or notice is mandatory, it is best to send it anyway or to consult a legal professional.
The letter of formal notice may encourage the person to resolve the conflict to avoid prosecution. Indeed, in certain situations, it demonstrates the seriousness of the situation. It may also be an opportunity to indicate one's openness to using other means than the court to resolve the conflict.
Because you have to pay fees at the courthouse when you are suing someone, generally, this person must reimburse you if you win your case. However, if you pursue it without having sent a letter of formal notice, and it agrees within a reasonable time to do what you ask, it will not have to reimburse you for these costs. You will have paid them even if you have in principle won your case.
If you are seeking an amount of money, the letter of formal notice allows you to begin the calculation of interest on this amount. In fact, if the person who is put in default does not pay you within the time you have given in the letter, the interest begins to accumulate. "
Credit for the text: www.educaloi.qc.ca
Template of formal notice (french)