A mise en demeure may be used when a person or company:
- has failed to do something they were supposed to do;
- has done something they were not supposed to do; or
- has failed to pay, deliver, return or hand over something that was due.
It is a final formal notice, usually prepared by an Attorney-at-Law, telling the recipient exactly what must be done, or stopped, within a stated period before further action is taken.
Common situations where it may be used
1. Unpaid invoices
A business may send a mise en demeure to a customer who has received goods or services but has not paid the amount due.
2. Incomplete or defective construction works
A homeowner or developer may formally call upon a contractor to complete delayed or abandoned works, or to correct defective work.
3. Unpaid rent or eviction of a tenant
A landlord may send a mise en demeure to a tenant who has failed to pay rent, breached the tenancy agreement or refused to leave the premises when required.
It may also be used as a formal step before proceedings are started to evict a tenant. The notice may require the tenant to pay the outstanding rent, remedy the breach or vacate the property within a stated period.
A mise en demeure does not itself evict the tenant. Where the tenant remains in occupation, the landlord may still need to obtain the appropriate court order.
4. Failure to deliver goods
A customer may send a formal notice where furniture, equipment, building materials or other goods have been paid for but not delivered.
5. Breach of a service agreement
A person or company may send a mise en demeure to a consultant, technician, contractor, surveyor or other service provider who has failed to carry out the agreed work.
6. Money lent but not repaid
A person may formally demand repayment of money advanced to a friend, relative, business associate or company.
7. Failure to provide documents or information
A mise en demeure may also be used to request documents, statements, records, certificates or accounts which a person or company is required to provide.
What should a mise en demeure contain?
A properly prepared mise en demeure should clearly state:
- who the parties are;
- what was agreed;
- what went wrong;
- what amount, action or document is required;
- the deadline for compliance; and
- what may happen if the recipient fails to comply.
The notice should be drafted in precise terms.
What does it achieve?
A mise en demeure may:
- formally notify the recipient of the complaint;
- identify the breach, unpaid amount or outstanding obligation;
- give the recipient a final opportunity to resolve the matter;
- create a written record of the demand;
- support a later claim; and
- encourage an amicable settlement before court proceedings are considered.
Does it automatically force payment or action?
No.
A mise en demeure is not a court judgment. It does not automatically allow the sender to seize property, recover money by force, compel the recipient to act or remove a tenant from premises.
Where the recipient ignores the notice, further legal proceedings may still be necessary.
Is it always necessary?
Not in every case.
Whether a mise en demeure should be sent depends on the nature of the dispute, the agreement between the parties and the result being sought.
In many cases, however, it is a useful first step because it gives the recipient a final opportunity to resolve the matter before the dispute goes further.
Need assistance?
Étude Elaheebocus may assist individuals and businesses in preparing, serving or responding to a Notice Mise en Demeure.
LEGAL DISCLAIMER
This article is provided for general informational purposes only and does not constitute legal advice. Professional advice should be sought in relation to any specific matter.