Free Letter of Authorization Template
A Letter of Authorization, also known as a letter of authority, is a legal document that allows another person or entity to perform certain tasks or actions on behalf of the authorizer.
It is typically used when the authorizer is unable to carry out a particular action and needs to delegate that responsibility to another individual.
What is the Purpose of a Letter of Authorization?
The purpose of a Letter of Authorization is to give legal authority to another person to act on someone else’s behalf. It can be used in various situations, such as allowing a family member to make medical decisions for a loved one, granting an employee the power to make purchases for a company, or giving permission for a bank to access personal financial information.
Who Can Write a Letter of Authorization?
Any person with legal authority can write a Letter of Authorization. For instance, a parent can authorize their child to travel abroad, or a business owner can give an employee authorization to make purchases on behalf of the company.
Key Elements of a Letter of Authorization
A well-crafted Letter of Authorization should be clear and precise. It needs to specify certain details to be effective:
- Authorized Actions: Clearly outline what the authorized person can do. For example, handling bank transactions, signing documents, or making decisions in your absence.
- Duration: State how long the authorization lasts. It could be for a single event or a set period.
- Person Authorized: Clearly identify who you’re giving this authority to. Include their full name and relation to you, if relevant.
- Your Details: As the authorizer, your identification details, like full name and contact information, should be included.
Remember, clarity is key. The more specific your letter is, the less room there is for confusion or misuse.
Is a Letter of Authorization Legally Binding?
Yes, a Letter of Authorization is legally binding when signed by the authorizer and includes all required information. However, it does not transfer ownership or legal rights but rather gives permission for someone else to act on behalf of the authorizer.
Do I Need a Lawyer to Write a Letter of Authorization?
No, you do not need a lawyer to write a letter of authorization. However, it may be advisable to consult with a lawyer if the authorization involves complex legal matters or if you are unsure about the legal implications of granting authorization.
When and Why to Use a Letter of Authorization
In Financial Matters
When you’re unable to handle financial transactions personally, a Letter of Authorization can empower someone you trust to do this on your behalf.
During Travel or Illness
If you’re traveling or unwell, this letter can ensure that your responsibilities are taken care of, be it collecting parcels or managing appointments.
For Child Care Decisions
Parents can use this document to authorize caregivers or relatives to make decisions for their children in their absence, like in medical emergencies.
In Business Settings
Business owners might use it to delegate decision-making powers to trusted employees for specific tasks or periods.