Last reviewed 10 September 2026
A letter before action, sometimes called a letter before claim, is the formal step a party is expected to take before starting court proceedings in England and Wales. It sets out the claim, the basis for it and what is wanted, and asks for a response within a stated period.
It is not a court document and it does not mean proceedings have begun. It does mean the other side has decided to formalise the argument, and that the pre action conduct rules now apply to both of you.
This guide is general information about responding to a letter before action in a business context. It is not legal advice, and you should take advice on your own circumstances, particularly before admitting any part of a claim.
What the letter is trying to achieve
The pre action rules exist so that parties exchange enough information to understand the dispute, narrow the issues and settle where possible without troubling the court. A claimant who ignores that expectation can be criticised, and so can a defendant who does not engage.
In practice, the letter should tell you the factual basis of the claim, the legal basis, the sum or remedy sought and the documents relied on. If it does not, you can reasonably ask for that detail as part of your response.
Diarise the deadline immediately
The letter will state a period for reply. For a straightforward business dispute that is often measured in weeks rather than days, and the more complex the claim, the longer the reasonable period. Note the date and work backwards.
If you need longer to investigate, ask for an extension in writing and explain why. A reasoned request is usually granted and, if it is not, the request itself shows the court that you engaged constructively.
Investigate before you reply
Pull the contract and any order documents, the invoices, the correspondence and any internal notes about what happened. Speak to the people involved while their recollection is fresh and record what they say.
Preserve documents rather than tidying them away. Deleting emails or records once a claim is anticipated is treated extremely seriously and can damage an otherwise strong defence.
What a good response letter contains
A proper reply states which allegations are accepted, which are denied and why, sets out your version of the facts, identifies the key documents and raises any counterclaim you may have. Where you accept part of the claim, say so clearly and separately from the parts you dispute.
Avoid two extremes. A bare denial with no reasoning invites proceedings, while an emotional narrative that admits things carelessly creates problems later. Keep it structured, factual and consistent with the documents.
Settlement discussions and without prejudice
Offers to settle are usually made on a without prejudice basis so they cannot be used as evidence of liability. Marking correspondence correctly matters, and mixing open factual points and settlement offers in a single letter creates avoidable confusion.
Courts expect parties to consider alternative dispute resolution. An unreasonable refusal to engage in mediation or another form of resolution can have costs consequences even for a party that goes on to win.
If you ignore it
The likely outcome is that a claim is issued. Once a claim form is served, strict deadlines apply for filing an acknowledgment of service and a defence, and missing them can result in judgment being entered without the merits being examined.
Judgment against a company also has practical consequences for credit and for tender processes. Responding properly at the letter before action stage is almost always cheaper than dealing with the consequences of not doing so.
Key points
- A letter before action is a pre action step, not the start of proceedings.
- Note the response deadline and ask for an extension in writing if you need one.
- Preserve documents as soon as a claim is anticipated.
- Accept what is genuinely accepted and explain each denial.
- Keep open correspondence separate from without prejudice offers.
- Consider mediation, because refusing it unreasonably can affect costs.
Frequently asked questions
- How long do I have to reply to a letter before action?
- The letter itself will state a period, and what is reasonable depends on the complexity of the claim. If the time given is too short for the issues raised, ask in writing for a specific extension and explain why it is needed.
- Can I reply myself rather than through a solicitor?
- You can, and for a small and simple dispute businesses often do. Advice is worth taking where the sum is significant, the facts are contested or the letter alleges something that could affect the business beyond this claim.
- Does replying mean I am admitting something?
- No. A reply can deny the claim entirely. What matters is that admissions are only made where they are genuinely intended, because they are difficult to withdraw later.
- What does without prejudice actually mean?
- It marks correspondence that is a genuine attempt to settle so that it cannot generally be shown to the court as evidence of liability. It does not protect statements of fact made in open correspondence.
- What happens if the other side ignores my response?
- They may still issue a claim. Your reply remains valuable because it records your position at the time and shows the court that you engaged with the pre action process.