An loa, or Letter of Agency, in business is a written document that authorizes one party to act on behalf of another party. This document is typically used in situations where a business or individual is employing a third party to represent them in a specific transaction or set of transactions.
An loa is commonly used in the telecommunications industry when a customer wants to switch their service provider but does not want to deal directly with the administrative tasks involved in the switch. By providing an loa to the new service provider, the customer allows them to act on their behalf to cancel service with the old provider, transfer phone numbers, and set up new services.
In essence, an loa establishes a legal relationship between two parties and sets out the terms of their agreement. It is a crucial document in business transactions as it provides clarity and authorization for one party to act on behalf of another.
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