In your daily schedule, it is not every day that you need to seek permission from someone that too through a formal procedure. Well, putting it in simple words that means seeking permission to perform a specific action by the desired party through a formal letter. And this letter is formally called an Authorization Letter. It is a document in which one party asks for permission from the second party to perform a specific action. One of the most common examples of Letter for Authorization is a permission slip of a school trip that a parent has to sign to send his kid on that trip. It is a formal way of acknowledgment between parents and school that their kid will be out for the trip and they have no problem with it.
Though there are different types of Letter of Authorization, they are mostly put up in specific templates to be used. So, let’s understand the different types of this letter.
- For business purposes, this letter is necessary to carry out different business activities as everyone is not available all the time.
- For school students, this letter is to seek permission when they have to go outside the school premises for a trip or exhibition.
- For official tasks, a person of authority is not available all the time, so this letter helps in carrying out the daily activities.
- For property related matters also, this letter helps as someone cannot be in the same city, thus would help to keep such matters signed timely.
- This letter can also help a person to collect medical records on behalf of someone.
- For a university student, this letter will help them to acquire important documents in order to move abroad.
- To receive a delivery package this letter will help in signing this document to collect it.
- For legal documents, an individual can use this format to sign the template.
Now, let’s have a look at this Letter Format Tips
Format of Authorization Letter
Before getting into the details, let us look at what are the important components of these letters. Since it is of formal nature and can be used for entering into legally binding contracts, there is some information that must be a part of authorization including:
- Writer’s Name and Full Information – It is important to clearly mention the writer’s name and information including address, so that it is clearly identified who is writing the letter and whether or not they have the authority to write this letter.
- Date of the letter – Another critical information to be added to an authorization letter is the date on which it is being written. This comes in handy, especially when the authorization is being given to carry out legal or financial transactions.
- Recipient’s Name and details – The next information to be covered is who is this letter being written to. It must be someone who has some authority and should be notified for any transaction. For example, a judge for a legal transaction to be handled by the authorized person.
- Declaration of the authorization – This is the crux of the authorization and must include
A) The name of the person being authorized
B) The transactions they are authorized to carry out
C) The dates between which they are authorized to carry out these transactions
- Reason for giving the authorization – This is important for all letters to ascertain that the letter is being written voluntarily and there is a valid reason behind someone else conducting your business in your place. It is sometimes in the jurisdiction of the recipient to reject the request of honoring the letter.
- Signature of the writer – The most important validation of the letter being written is a verifiable signature of the writer since the authorization can be used to carry out legal as well as financial transactions.
Tips: How to make an authorization letter
Writing a letter for authorization can be a little tricky as it bestows another person to carry out actions on your behalf. Here are a few tips to keep in mind while writing one
- Clearly identify the need – The first step is an in depth analysis of why is this letter required. Can this action be completed at another time, when you can do it yourself? What will happen if this action does not happen at all? If you find the answers to these questions leading you to write the letter, go ahead and write it.
- Identifying the person to be authorized – Who is the best suited to carry out the transaction in your absence? How much do you trust that person? Will they be willing to do this task for you? It is very important to identify the right person to carry out the task for you.
- Identifying the recipient of the letter – It is also equally important to finding out who the letter should be addressed to. In case of a financial transaction, for example, it is better to address the letter to the bank manager instead of some clerical staff.
- Duration of the authorization – For how long do you want to authorize the person to carry out any transactions? Is this authorization permanent in nature (lawyer representing you in a case) or is this only for a temporary period (Staff member while you are on leave)?
Tips: How to write an authorization letter
Once you decide to write a letter for authorization, follow the steps as listed below to do the same
Step 1: Ensure that you have clearly identified the need for writing the letter, the person you are going to authorize and the intended recipient of your letter
Step 2: Write down the letter ensuring you have covered all the components including
- Your Name and Information
- The Date of the letter
- Recipient’s Name, Designation and Address
- Declaration of the authorization including the authorized person’s name, duration of the authorization, the transactions they are authorized to make and the transactions they are not authorized to make
- Reasons for the authorization
- Your signature
Step 3: Proofread and edit your letter to ensure that the letter is short and concise, yet completely conveys your intentions.
Step 4: Get the letter signed by at least 2 witnesses and also notarized to make it legally binding.
Step 5: Give the original letter to the authorized person, but ensure to retain a copy for your own records.
Authorization Letter Format for Bank
Re: Account Number 123456Dear Mr. XYZ,
Please be informed that Mr. (Name) is authorized to act on my behalf regarding this account from DD/MM/YYYY to DD/MM/YYYY. I will be in ------ and will not be able to attend my affairs. During this mentioned above dates, Mr. (------) is authorized to withdraw funds, deposit funds, and initiate wire transfers from this account.
Please call me at this number 00000000000 if you have any questions.
Vehicle Authorization Letter Format
Hawai, USA - 60007
Subject: Vehicle Authority Letter
This is to certify that Mr. -------- S/O ------------ having CNIC # ---------- is working in our organization as a Chief Accountant. The company thus authorizes -------- to legally and responsibly use the motor car issued by the company.
(Specification of which are given below)
Vehicle Make Honda