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What is a letter of authorization?

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The Business Dictionary website defines a letter of authorization as a "written confirmation of a person's rank, authority, ability to enter into a legally binding contract, take a specific action, spend a given sum, or delegate his duties and powers." The letter gives a person or third party express permission to conduct business on behalf of another person.

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A letter of authorization may aid a person who requires help to perform critical duties in a formal setting. Legally, a letter of authority is sufficient to delegate sensitive legal, health or financial obligation to another person or entity.

Typically, the letter of authorization is typed following an acceptable professional business format and applies correct grammar. The letter must expressly specify full particulars of the concerned parties and provide precise, in-depth details for clarity and communication purposes. If the letter regards medical information, be sure to include all relevant medical and insurance account numbers.

Typed letters of authorization are preferred to handwritten letters. Handwritten letters may be difficult to read and vulnerable to errors, which may skew the intent of the letter. Typed letters conform to the formalities of official communication. The letter of authorization is short and precise. The message must be written using a professional tone.

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