A Canadian Letter of Authorization is a formal written document by which an individual (the Sender) authorizes another person (the Representative) to act on their behalf for specific, limited purposes. Unlike a power of attorney, which is a formal legal instrument governed by provincial legislation such as Ontario's Substitute Decisions Act, 1992 (S.O. 1992, c. 30) or British Columbia's Power of Attorney Act (R.S.B.C. 1996, c. 370), a letter of authorization is a simpler document intended for specific, enumerated tasks that do not require the full legal authority of a power of attorney.

The letter of authorization has its legal basis in the common law of agency, which is applied uniformly across Canada's common law provinces (all provinces except Quebec). Under agency law, a principal may authorize an agent to act on their behalf, and the agent's actions within the scope of the authorization bind the principal. In Quebec, the Civil Code of Québec governs the law of mandate (art. 2130-2185 C.C.Q.), under which a mandator may give a mandatary the power to perform juridical acts on the mandator's behalf. A letter of authorization functions as evidence of the principal's (or mandator's) consent to the agent's (or mandatary's) authority.

The scope of a letter of authorization is intentionally narrow. It is commonly used to authorize someone to collect registered mail from Canada Post, perform specific banking transactions, collect documents from government agencies or private organizations, sign for receipt of goods or services, and represent the sender in administrative matters. The document expressly states that it does not constitute a power of attorney, which helps prevent the representative from exceeding the intended scope of authority.

A Canadian Letter of Authorization is needed whenever an individual is unable to personally attend to a specific task and wishes to delegate it to a trusted representative. Common scenarios include picking up registered mail or parcels from Canada Post when the addressee is unavailable, collecting documents from government agencies such as Service Canada, provincial service centres, or Immigration, Refugees and Citizenship Canada (IRCC), performing limited banking transactions when the account holder cannot attend in person, signing for delivery of goods or services, and attending administrative appointments or meetings.

The letter is particularly useful for Canadians who are temporarily absent from their usual residence due to travel, work commitments, or health reasons. It provides a documented, limited-scope authorization that organizations can verify without requiring the formality and expense of a power of attorney. However, it is important to understand that many Canadian organizations have their own authorization processes. The Canada Revenue Agency (CRA) requires Form T1013 (Authorizing or Cancelling a Representative) for tax-related authorizations. Service Canada has its own consent and authorization processes. Financial institutions typically have proprietary third-party access forms. It is always advisable to check with the specific organization in advance to confirm whether they will accept a general letter of authorization.

A letter of authorization should not be used for actions that require a formal power of attorney, such as managing financial investments, making real estate transactions, making legal decisions, or managing affairs during the principal's mental incapacity. For these situations, a power of attorney for property (Ontario) or a continuing power of attorney (BC, Alberta) is required, executed with the formalities prescribed by provincial legislation.

A comprehensive Canadian Letter of Authorization must include several essential elements. First, clear identification of the Sender (the person granting the authorization) with their full legal name, residential address including province or territory and postal code, email address, and phone number. Second, identification of the Addressee (the organization or individual to whom the letter is directed), with their full name and address.

Third, identification of the Representative (the person authorized to act on the Sender's behalf), with their full legal name and residential address. The Representative should carry government-issued photo identification that matches the name on the letter. Fourth, a specific, detailed list of the authorized actions. The more precise the description, the more likely the letter will be accepted by the recipient organization. Vague or overly broad authorizations may be rejected.

Fifth, a clause specifying when the authorization becomes effective (immediately upon execution or from a specific date) and when it expires (on a specific date or upon written revocation by the Sender). Sixth, a scope limitation clause explicitly stating that the letter does not constitute a power of attorney and that the Representative's authority is limited to the specified actions. Seventh, a verification provision noting that a copy of the Representative's identification is enclosed or available for inspection.

Eighth, a governing law clause identifying the province or territory whose laws govern the letter, along with applicable federal laws of Canada. Ninth, the Sender's signature and date. The letter should be printed on plain paper, signed in ink, and dated. While notarization is not legally required, it may be requested by certain organizations. Finally, the Sender should retain a copy of the letter for their records and provide the original to the Representative.