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A Letter of Instruction is a letter giving another party an order or authority to carry out specific instructions on behalf of the sender of the letter.
This can vary in formality, but examples include a person giving his/her stock broker the authority to sell his/her shares in a company, a family giving instructions to a lawyer to sell a family land on their behalf, or a letter given by the administrators of an estate of a deceased person to a lawyer to obtain letters of administration. This document details the particulars of the sender and the recipient, the position of the recipient and the instructions.
This document is similar to the Power of Attorney as both are legal documents giving a party the authority to carry out specific tasks. However, the Power of Attorney gives a person a total power to act and make decisions on behalf of another. Also note that unlike the letter of instruction, the Power of Attorney is a registrable instrument.
How to use this document
This document is used by any party who desires to instruct another to carry out activities for that party or on their behalf.
After filling this form, the sender of the document must sign it. If the sender is a company or an organization, an authorized (that is a person in position of authority such as a managing director, managing partner, etc.) representative of the sender must sign the document on its behalf. After signing the document, it must be sent to the recipient who must indicate acceptance to carry out the instructions. The recipient may indicate acceptance either orally or by signing an Engagement Letter or any other letter or agreement indicating its acceptance to carry out the instructions.
If the sender intends to hire the recipient as an independent contractor (which is a permanent position), the sender may also need a Service Agreement as it define all the terms and conditions of their relationship.
The general rules of contract are applicable to this document.
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