demand

Contract LawLegal glossary term

Quick answer

Demand usually means a formal request for something you are owed. In contracts, it matters because it can trigger default or termination. Before signing, check the demand clause for clarity on what triggers it and what happens next.

Definitions

What is demand?

Legal Definition

A demand is a formal request for something to which one claims a right. In law, it often triggers an obligation or creates a default. The key qualifier is often the specificity of the request and the stated consequence for non-compliance.

Plain-English Translation

When you ask your parents to borrow the car, that's a demand. They can say yes or no, but if they said yes and you ask again later, they might let you go.

Contract relevance

Why demand matters in contracts

Failure to meet a demand can result in a breach of contract, loss of a legal right, or a default judgment against the party failing to respond. The party making the demand bears the risk that it is not properly made or supported by law.

Document context

Where demand appears in documents

Document typeSectionWhy it matters
Loan AgreementRepayment ClauseTriggers default if not met
Lease AgreementDefault ClauseSpecifies notice period for rent demands
Promissory NoteMaturity Date ClauseEstablishes when principal is due
Construction ContractPayment ClauseOutlines process for demanding progress payments
Demand LetterPre-litigation CommunicationFormalizes a claim before court filing

Contract language

Common contract wording

Contract wordingPlain-English meaningWhat to check
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Red flags

Red flags to watch for

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Wording examples

Clearer wording examples

Vague wording

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Vague wording

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Clearer wording

Note: “clearer” means easier to read — not legally reviewed or guaranteed safe.

Pre-signature checklist

What to check before signing

1

What specific actions or failures trigger a demand?

2

Is there a clear definition of what is being demanded?

3

What is the exact timeframe for responding to a demand?

4

What are the consequences of failing to meet the demand?

5

Is there a specified method for delivering the demand?

6

Does the contract allow for a cure period after a demand is made?

7

Who has the authority to make a demand on behalf of each party?

Party impact

How demand affects each party

PartyWhat this party should check
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Comparison

demand vs similar terms

Related termPlain meaningMain difference from demand
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Missing or vague

If demand is missing or vague

If a demand is missing or vague, disputes can arise over whether a formal request was made or what exactly was required.

This ambiguity can lead to arguments about whether a default has occurred.

Parties may face litigation to clarify obligations and consequences, increasing costs and uncertainty.

Visual model

Understand demand fast

An explainer image has not been generated for this term yet.
01

A landlord sends a tenant a written notice demanding overdue rent within 10 days, or the lease will be terminated.

02

A borrower receives a letter from a bank demanding immediate repayment of a loan due to a covenant breach.

03

A supplier issues a formal demand to a buyer for payment of an invoice that is 60 days past due.

Document context

How demand shows up in legal documents

What is it?

A demand is a contractual clause or a legal notice. It governs the timing and method of performance or the assertion of rights.

Why does it matter?

Failure to meet a demand can result in a breach of contract, loss of a legal right, or a default judgment against the party failing to respond. The party making the demand bears the risk that it is not properly made or supported by law.

When does it matter?

A demand is often triggered by a specific event, such as non-payment or a breach of contract terms. It can also be a prerequisite to filing a lawsuit under certain statutes.

Where is it usually seen?

Demands appear in contract clauses, demand letters sent by attorneys, and statutory notices required before litigation.

Who is affected?

A creditor makes a demand to a debtor for payment. A landlord makes a demand to a tenant for rent. A subcontractor makes a demand for payment to a general contractor.

How does it work?

First, a party identifies a right or obligation. Then, they draft a formal request stating what is owed and by when. Finally, they deliver the demand according to contract terms or legal requirements.

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Wikipedia

Demand

In economics, demand is the quantity of a good that consumers are willing and able to purchase at various prices during a given time. In economics "demand" for a commodity is not the same thing as "desire" for it. It refers to both the desire to purchase and...

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Knowledge graph

Where demand connects to real contract work

This layer links the term to nearby glossary entries, document use cases, and contract-risk guides so readers can move from definition to context without dead ends.

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Source & disclosure

This page is an AI-assisted plain-English explanation based on LexPredict Legal Dictionary context and contract-review patterns. It is not legal advice. Meaning may vary by jurisdiction, industry, and exact clause wording.

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