The demand letter before small claims court: the step you shouldn't skip

The Small Claims Division of the Court of Québec settles disputes of $15,000 or less. But before you file there, the law expects a preliminary step: to demand in writing from the other party and give them a chance to comply. This guide explains why this step is unavoidable, what your demand letter must contain, how much time to allow, how to prove receipt and what follows once the deadline passes.

Why the law requires it before small claims

In small claims, you do not sue someone by surprise. The Civil Code of Québec provides that a debtor must first be “put in default” (formally placed in default of performing their obligation) before the creditor can exercise their remedies. Article 1594 C.C.Q. states that the debtor “may be put in default by an extrajudicial demand addressed to him by his creditor to perform the obligation.” That extrajudicial demand is precisely your demand letter.

In practice, this means the demand letter is the gateway to legal recourse. It gives the other party one last chance to settle amicably, which avoids many hearings: many disputes are resolved at this stage. And if the matter does go to the tribunal, your demand letter and its proof of sending become central documents in your file: they show you acted in good faith and that the debtor knew what was being claimed.

A small claims judge who finds that no written demand preceded the claim can hold that absence against you, particularly for interest and certain damages. Failing to send a demand letter weakens a file before the hearing even begins.

What your demand letter must contain

For a dispute headed to small claims, the letter must be precise: the judge and the other party must understand exactly what you are claiming and why. It should include:

• Your full contact details and those of the recipient
• The date it was written
• The words “without prejudice,” which protect your rights
• A clear, chronological account of the facts, with dates and amounts
• The exact amount claimed (for example “$2,400”), without rounding up or overstating
• A reasonable deadline to comply: usually 10 days
• The consequences of non-compliance, including filing a small claims application
• Your signature

The amount you state matters: the Small Claims Division is reserved for claims of $15,000 or less, not counting interest (article 536 C.C.P.). Quantify your demand realistically from the demand letter onward: it is the same amount you will carry into your application to the tribunal.

The time to allow

Article 1595 of the Civil Code of Québec requires the extrajudicial demand to be made in writing and to allow “sufficient time for performance, having regard to the nature of the obligation and the circumstances.” In practice, a deadline of 10 days is generally considered reasonable for a small claims dispute. It can be shorter in an emergency, or longer for a large sum or a complex obligation.

A deadline that is too short does not make the letter invalid: article 1595 C.C.Q. provides that the debtor may then perform within a reasonable time after the demand. Too tight a deadline therefore delays your recourse instead of speeding it up. Wait until the deadline you allowed has passed before filing your application with the tribunal.

Proof of receipt: decisive at the hearing

Before the judge, the question almost always comes up: did the other party actually receive the demand letter? If you cannot prove it, the debtor can claim they were never put in default, and your preliminary step loses its value. That is why the method of sending matters as much as the content of the letter. Three methods can prove receipt:

• Registered mail (Canada Post): about $15 to $25, 3 to 10 business days
• Bailiff (huissier de justice): about $70 to $150, delivered with a record of service (the strongest proof)
• Certified email (LCCJTI): instant sending, timestamped proof of receipt, the most economical option

With Locato, you fill in your template, then send your demand letter by certified email for $14.99, with a timestamped proof report conforming to the LCCJTI: confirmation of sending, confirmation of delivery to the recipient's server and opening detection where possible. One nuance to know: the recipient must have consented to receiving communications by email: if you have never exchanged emails with them, double up with registered mail so there is nothing to contest.

The steps after the demand letter

If the deadline passes without the other party complying, you can file your application with the Small Claims Division of the Court of Québec, for a claim of $15,000 or less (article 536 C.C.P.). Filing is done at the court registry; the clerk can help you fill in the form, but cannot give you legal advice.

• Gather your evidence: the demand letter, its proof of sending, contracts, invoices, photos and relevant exchanges.
• Fill in the application form, stating the facts, the nature and amount of the claim and the conclusions sought.
• File your application at the registry and pay the applicable court fees.
• Wait for the defendant's response: they may pay, contest, or propose mediation.

In small claims, the parties represent themselves: lawyers do not plead there. That is why it pays to have prepared your file well from the demand letter onward. For a detailed look at what comes next, see our guide on the steps after a demand letter.

Frequently asked questions