Understanding Business Letters

Understanding Business Letters

Business correspondence generally refers to the exchange of data in a formal written format for the purpose of business dealings. Generally, business correspondence includes all kinds of communications that occur in the course of business affairs. Business correspondence generally takes place between the various parties involved in the business transaction, within companies or between the clients and the business. The correspondence commonly refers to the verbal communication between people. However, there are many instances where electronic forms of business correspondence take place as well.

Generally, any business letter that contains the name of the sender, date and address of the sender and recipient is known as a business letter. Any business letter sent by a company to another company is calling a business letter. Likewise, any letter that is written with reference to a product or service offered by a company and that requests information from the recipient or informs about the nature of a product is called a business document.

In United States, the Fair Debt Collection Practices Act gives general guidelines on how the content of business letters ought to be written. The Federal Trade Commission or the FTC has placed several rules and regulations under this act that help the business world deal with clients in a professional manner. Under the Fair Debt Collection Practices Act, a business shall not threaten, harass or embarrass a business client in any way, nor shall it engage in any unfair trade practices.

A business letter cannot contain any implied terms that do not have legal consequences to the business. For example, a business letter may mention that all disputes should be directed to the Company or can also mention that all rights that you may have under law are waived. Such an implied term of a business letter may have a negative impact on a business. Such an implication would result in confusion and may give rise to unwanted demands from a business. Similarly, it should also be mentioned in the business letter that once you sign on any contract with the Company, you will be bound by the agreements duly entered into between you and the Company.

The business letter can mention the name of the Company and also mention the address of the registered agent of the Company. It should clearly state the nature of business and the role of the Company. The business letter should clearly state all the terms and conditions agreed upon between you and the Company. You should avoid any threats, harassment or intimidating language in the business letter.

You need to keep in mind that business letters are not intended to convey personal or corporate information. Any such information conveyed in business letters is confidential and may not be disclosed to a third party. Business correspondences are used for business purposes only. There is no room for any flattery in business letters. Business correspondences are a means to communicate effectively about the business.