An Authorization Letter To Purchase On Behalf is a crucial document in Indian business operations where an individual or organization needs to delegate purchasing authority to another party. This document is commonly used when business owners, executives, or procurement managers need to authorize staff members or external agents to make purchases on their behalf. It derives its legal framework from the Indian Contract Act, 1872, and may require compliance with the Powers of Attorney Act, 1882, depending on its scope. The authorization letter typically specifies the types of purchases allowed, financial limits, duration of authority, and any special conditions or reporting requirements. It's particularly valuable in situations requiring regular procurement activities, during the principal's absence, or in multi-location business operations where centralized purchasing isn't practical.

1. Date and Place: Current date and location where the letter is being executed

2. Authorizer Details: Full name, address, and contact information of the person granting the authorization

3. Authorized Person Details: Full name, address, and contact information of the person being authorized to make purchases

4. Purpose Statement: Clear statement of the authorization being granted for making purchases

5. Scope of Authority: Specific details about what kinds of purchases can be made and any financial limits

6. Duration: Period for which the authorization is valid

7. Signature Block: Space for signatures of the authorizer, authorized person, and witnesses