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Authority To Act Letter Template for England and Wales

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Key Requirements PROMPT example:

Authority To Act Letter

"I need an Authority To Act Letter authorizing our CFO to make financial decisions and execute transactions up to £500,000 on behalf of our UK subsidiary during my six-month sabbatical from January 2025 to June 2025."

Document background
The Authority To Act Letter is a crucial legal instrument in England and Wales used when one party needs to delegate specific powers or responsibilities to another. This document is particularly important in situations requiring clear documentation of authorized representation, such as financial transactions, property matters, or legal proceedings. The letter typically includes detailed information about the parties involved, the scope of authority granted, duration of the authorization, and any specific limitations or conditions. It provides legal protection for both parties and helps prevent misunderstandings about the extent of delegated authority.
Suggested Sections

1. Date: Current date of the authority letter

2. Parties: Full details of both the authorizing party and the authorized party

3. Scope of Authority: Clear description of what actions are being authorized

4. Duration: Time period for which the authority is valid

5. Signature Blocks: Space for both parties to sign and date

Optional Sections

1. Limitations: Any specific restrictions on the authority granted, used when authority needs to be qualified

2. Revocation Clause: Terms for revoking the authority, included for longer-term authorizations

3. Indemnification: Protection clauses for the authorized party, included in high-risk situations

4. Confidentiality: Terms regarding confidential information, included when sensitive information is involved

Suggested Schedules

1. Proof of Identity: Copies of relevant identification documents for both parties

2. Specific Instructions: Detailed instructions or procedures if the authority involves complex actions

3. Related Documents: Any referenced documents or forms that relate to the authority being granted

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions




















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Industries

Agency Law: Fundamental principles from the Law of Agency and Commercial Agents (Council Directive) Regulations 1993, governing the relationship between principal and agent

Contract Law: Common Law principles of contract formation, Contract Law Act 1999, and Contracts (Rights of Third Parties) Act 1999, establishing the basic framework for legally binding agreements

Data Protection Laws: UK General Data Protection Regulation (UK GDPR), Data Protection Act 2018, and Privacy and Electronic Communications Regulations (PECR), governing the handling of personal data

Financial Services Legislation: Financial Services and Markets Act 2000, Financial Services Act 2012, and Money Laundering Regulations 2017, applicable when authority involves financial matters

Property Law: Law of Property Act 1925 and Land Registration Act 2002, relevant when authority involves property-related matters

Powers of Attorney Legislation: Powers of Attorney Act 1971 and Mental Capacity Act 2005, governing formal delegation of legal authority and decision-making powers

General Legal Principles: Fundamental principles including authority and delegation, fiduciary duties, and duty of care that underpin the legal relationship between parties

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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