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The legal effect of the letter of attorney in business operation

Author of article: Lawyers of Win & Win Co. Law Firm

A lawyer’s letter refers to a professional legal document made and sent in the name of a law firm by a lawyer who accepts the client’s authorization to evaluate relevant facts or legal issues, and then puts forward requirements to achieve certain results.

The lawyer’s letter is convenient way to recover the debts such as the payment for goods. Creditors have the right to settle disputes through litigation, but due to the long time and huge investment. In this case, the clever use of lawyer’s letter is a more rapid, simple, low-cost way of safeguarding rights. There are many types of lawyer letters, which can be divided into several types according to the purpose to be achieved:

  1. Urging, mainly to urge the opposite party to perform its obligations in time;
  2. Warning, mainly in order to stop or prevent the occurrence of some action;
  3. In order to reply to opposite party’s consultation, according to the client’s commission, answer the question from the perspective of professional lawyers;

The role of a lawyer’s letter

  1. The lawyer’s letter can recover the debts such as the payment for goods in arrears in a convenient way. In business activities, arrears of payment often happen, if directly through litigation, not only will take a long time to resolve, but also will lose customers. If the lawyer sends a letter to the client pointing out the seriousness of the problem, the client will consider litigation to resolve the adverse consequences and will pay back the debt.
  2. Before a lawsuit is filed or arbitration is applied, a letter sent by a lawyer can have the effect of extending the statute of limitations.
  3. A letter sent by a lawyer can clarify the facts and stop illegal torts. Lawyers’ letters have the function of clarifying facts and deterring illegal acts.
  4. Perform other legal notification obligations. Notice of the invalidity of the contract, the exercise of the right of cancellation, and so on, all the parties have the right to inform through the lawyer letter.
  5. Notice to terminate the contract. This is a right that contract law enforces a party, the basis is “contract Law” the regulation of the 93 th, the 94 th, the 96 th, inform the other party the contract is cancelled since notice arrives. If the other party has objections, it may request the people’s court or an arbitration institution to confirm the validity of the termination of the contract.
  6. Reach an out-of-court settlement. The conciliatory function of lawyer’s letter is its main use. It is for this reason that lawyer’s letters are becoming more and more popular. This kind of lawyer’s letter urges both parties to reach an out-of-court settlement agreement by notifying the other party to come, write or call within a specified period of time.
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