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A demand letter is a formal document in which one party requests another to take a specific action, often related to legal obligations or rights. Typically drafted by an attorney, it may demand that the recipient cease illegal activities or fulfill contractual duties. For example, an attorney might send a demand letter to enforce a contract or address issues like copyright or trademark infringement. The letter serves as a preliminary step to resolve disputes before pursuing further legal action. Understanding the implications of receiving or sending a demand letter is crucial for both parties involved.