BusinessDictionary.com defines a letter of indemnity as an official document that insures the property of one party against damage by another. This type of letter is typically written by a bank or insurance company.Continue Reading
Investopedia explains that the main purpose of a letter of indemnity is to assure both parties that financial reparations will be made if part of the contractual obligation is broken. This is generally related to contractual agreements where a valuable item is being transported or taken care of by a second party. According to BusinessDictionary.com, the letter of indemnity assures the party who owns the item that if it is damaged, lost or stolen, the party will be financially compensated.
Investopedia also explains that a letter of indemnity provides peace of mind that no financial losses will occur during the course of the business transaction. In this way, letters of indemnity are similar to insurance policies that replace stolen or damaged property with property or money of equal value. However, unlike insurance policies, letters of indemnity can be agreed upon between individuals and any organization with oversight into the matter. The Law Dictionary notes that a letter of indemnity is often known as an indemnity bond.Learn more about Business Communications
A payment letter is a document that accompanies a remittance for previously acquired products or services. For example, if a business ordered merchandise and had to pay a few weeks later, the company would send a payment letter along with the remittance to the vendor to detail purchase information. Letters of payment also clarify loan repayment arrangements and remind borrowers to pay on time.Full Answer >
A letter request for payment is a document used by a business owner to ask payment from a client on a past due account for a rendered service or product. When writing this type of letter, there are a few things to keep in mind, such as keeping the appropriate tone, using a business or company letterhead, addressing the specific issue and including a copy of the original bill, according to English Club.Full Answer >
A demotion letter or document should include details of the current and demoted position, along with the demoted salary grade, improvements that should be made to avoid demotion and the time frame in which to make the required improvements, according to the North Carolina Department of Health and Human Services (NCDHS). The letter should also include the reasons for the demotion, such as policy violations based on witness accounts.Full Answer >
A repayment letter template, also known as a payment agreement letter template, is a customizable document that allows a person to outline the specific details of loan repayment schedule. The letter is a legally binding contract that outlines the exact terms of the loan, such as amount and due date.Full Answer >