Authorization letters are documents which transfer power from one person to another, even if only as a token or in a nominal manner. An authorization letter is issued by an individual, company or business concern in order to invest the recipient with certain powers which can be anything from withdrawing money from a bank account to making a business deal. They signal a grating of power.
Authorization letters must be verified carefully. Since they have become mandatory in a number of cases, the prevalence of fake or forged authorization letters is a global phenomenon. Every attempt should be made to determine the authenticity of the authorization letter.
Such letters are issued by institutes like government organizations, business enterprises and so on. Since authorization letters signify a granting of authority to an individual or another concern, such letters equip the latter with the power to act, to make a declaration or take a decision on behalf of the former.
The tone of the authorization letter must be curt and business like. They are legal documents as well and thus they must be given only after verifying the credentials of the recipient. In case of any misdoing, an authorization letter can be used as legal evidence.