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A demand letter from an attorney notifies an individual to settle a matter before legal action is pursued. It is drafted by an attorney representing a client, typically to demand payment or rectify contract violations. The video covers essential information about such letters and offers a free official template. Demand letters can be sent by anyone facing a legal dispute and may request payment, item returns, or other legal actions. These letters serve to document the demand in writing, explain the reasons, inform the recipient of a settlement deadline, warn of potential legal action, and serve as evidence if the matter escalates to court.