Debit Note Letter to Contractor

A debit note to the contractor is a document prepared by a customer or client for the contractor/vendor/supplier of the goods. Through this letter, the customer puts a demand forward for the refund of his money for the damaged or faulty goods received from the contractor.

When the orders are placed and later received by the customers, sometimes, they are faulty in part or completely. If the full payment has already been made, the customer would demand a refund for the defective goods. However, in the real world, often the full payments are not made in advance and the customers are recorded as debtors in the contractor’s financial records. Even in these cases, a debit note letter is issued by a customer to inform the contractor that the amount they are indebted to has now been reduced due to the damaged pieces. As the payment has not been made yet, this letter would be different in the sense that the refund would not be claimed.

The information provided in a debit note letter to the contractor varies based on the damage and defect involved. However, the general details included in this letter are:

  • Date.
  • Details of the company/customer.
  • Details of the contractor.
  • Reference of the order and the issue with it.
  • Effects of the flawed order on the customer.
  • Demand for the refund, including the details of the amount.
  • Deadline for the refund.
  • Any other comments/points.
  • Salutations and signature.

As this letter serves the purpose of a formal notification to the contractor, if the refund is not made, this letter can be used for the legal basis as well.

Sample Debit Note Letter to Contractor

Date

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Name

Address

Dear Mr. Smith,

This debit note letter is in reference to the order [X] from your company received on 30th December 2019. Among the 30 chairs we received, 5 of them were broken (from different parts), which we want to return and get a refund.

We have recently signed a contract with you for purchasing office furniture from your company, ABC Limited. As the first order that you delivered was excellent, we did not consider the need to precheck the second order. However, we are extremely disappointed with the delivery of broken chairs. We had to set our office for new hires, which would be delayed now due to your fault.  

As one chair cost us $95, the total cost of chairs that needs to be refunded would be $475. Along with that, we claim $100 for the transport cost we incurred for returning those faulty chairs. Therefore, you have to pay us $575 in total, and as per your compensation policy, we expect the refund within 14 days of receiving of your faulty chairs. As per our phone conversation, you have already received the chairs, so we are counting the 14 days from today, i.e. 5th January 2020.

We expect that you would do the processing soon and refund our money as well as ensure quality and standard in the next orders.

Regards,

Steven John.


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