An authorization letter comes in handy when one party gives authorization to the other party to act on their behalf. This letter is often used in business settings when it comes to carrying several business activities. There could be many instances where you may need to authorize someone to act on your behalf i.e. collect documents, conduct financial transactions, or make decisions. Authorization letter is a formal document that protect the legal rights of both the parties. In this post, we have covered important information related to authorization letters and provided free letter samples & templates as well.
What is an Authorization Letter?
Let’s begin with a definition, “An authorization letter is a formal document that is issued to grant permission to another person or organization to perform specific actions or duties on behalf of the letter’s issuer”. This type of letter is often used in business, legal, medical, and personal contexts.
Let’s understand this with an example, let’s say there is company called “XYZ” which is run by their Founder “ABC” and the founder got sick or not in a situation to take care of work for 2 weeks. So founder has decided to give permission to his close associate to act on his behalf for 2 weeks and perform certain tasks within defined boundaries. An authorization letter will be used in this case that the person receiving the authority (the authorized party) has permission to perform certain tasks.
Below you can see Authorization Letter Sample & Template,
What are the Benefits of an Authorization Letter?
There are numerous benefits of using an authorization letter and some of them are listed below:
- An authorization letter acts like a legal proof and protect the legal rights of all parties which are involved if there are any disputes.
- This letter defines the boundaries in which the authorized party has to act or take decisions.
- Having written authorization eliminates misunderstandings and provides a record of consent.
- It gives a clear record of who is authorized to act on your behalf in a specific situation.
An authorization letter is a formal document that is prepared very carefully under legal supervision. Make sure to clearly define the boundaries in which the authorized party has to work. Check out the sample letters and templates here to see how an actual authorization letter looks like.
Different Types of Authorization Letters
There are different type of authorization letters available which serve different purposes. Some of the common types are discussed below:
General Authorization Letter: This letter is commonly used to grant broad permissions but remains limited to a specific time or purpose. It could be used to Authorize someone to collect documents or to authorize someone to act in personal matters.
Specific Authorization Letter: This one is more detailed and specify the exact tasks that the authorized party is allowed to perform within set boundaries. This letter could be used to authorize someone to withdraw money from a bank account.
Medical Authorization Letter: This one is used when it comes to grants permission for medical decisions i.e. a patient authorizes someone to access their medical records, etc.
Parental Authorization Letter: This letter comes in handy when it comes to Granting permission for a minor to travel with a guardian or may be authorizing a school to take emergency medical action for a child.
Step by Step Guide to Write an Authorization Letter
Here is a step by step guide to write an authorization letter that ensures clarity and avoids misinterpretation.
- Start a letter by including your full name, address, and contact details.
- Make sure to mention the date on which the letter is written. It essential for record.
- Ensure to address the recipient properly. Mention the full name and address of the person or organization receiving the authorization.
- The purpose of the authoriation letter should be clearly stated. Specify exactly what the authorized person is allowed to do and what are the boundaries. Be precise while writing this section.
- The details of the Authorized Person should be specified very clearly i.e. full name, address, and contact details of the person receiving the authority.
- Make sure to mention validity period to ensure the authorization is time-bound.
- Again, if there any limitation or restrictions to the authority granted, make sure to state them explicitly.
- Sign the letter and get it notirized, if required.
Sample Authorization Letter
[Your Name]
[Your Address]
[City, State, ZIP Code]
[Your Contact Information]
[Email Address]
[Date]
To,
[Recipient’s Name]
[Recipient’s Address]
[City, State, ZIP Code]
Subject: Authorization Letter
Dear [Recipient’s Name],
I, [Your Name], hereby authorize [Authorized Person’s Name] to [specific action, e.g., collect my bank statement on my behalf] from [Institution Name] located at [Address].
This authorization is valid from [Start Date] to [End Date] and is limited to the specific purpose mentioned above. [Authorized Person’s Name] is required to present valid identification during this transaction.
Please do not hesitate to contact me at [Your Contact Information] if any further verification is required.
Thank you for your cooperation.
Sincerely,
[Your Name]
[Your Signature]
Here are a Few Things to Take Care Of
- This letter has to be very specific. Poorly written letter may lead to misinterpretation.
- An expiry date should be there. Open-ended authorization may be misused.
- Do not enter any incorrect details. All the details should be accurate only.
- Make sure to sign the letter and get it notarized if required.
- Proofread the letter once before sending it.
Conclusion
An authorization letter is one of the most important documents that is often used in businesses when it comes to authorize someone to perform certain duties or tasks for a specified time. This document facilitates smooth transactions, delegation of responsibilities, and legal compliance. Creating such a letter does not come naturally to most of us, therefore, make sure to hire a professional to write such letters or take reference from sample letters or templates. Find out useful authorization letter templates here and download a suitable one for your use.