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What is a Confirmation Letter?

A Confirmation Letter puts important agreements or facts in writing, serving as a clear record between parties in Malaysian business and legal contexts. It might confirm job offers, business arrangements, or receipt of documents - turning verbal discussions into formal proof that both sides can rely on.

Under Malaysian contract law, these letters help prevent misunderstandings and provide evidence if disputes arise later. While not always legally required, they're widely used in banking, employment, and commercial transactions to protect everyone's interests. Malaysian courts often look to confirmation letters when determining what parties actually agreed to.

When should you use a Confirmation Letter?

Use a Confirmation Letter whenever you need to document important business arrangements in Malaysia, especially after verbal discussions or preliminary agreements. Common situations include finalizing employment terms, confirming receipt of payments or goods, acknowledging changes to contracts, and recording specific commitments made during negotiations.

These letters are particularly valuable in banking transactions, property dealings, and commercial partnerships where Malaysian law requires clear documentation. They protect your interests by preventing future disputes, providing evidence for regulatory compliance, and ensuring all parties have the same understanding of what was agreed upon.

What are the different types of Confirmation Letter?

Who should typically use a Confirmation Letter?

  • Employers: Issue confirmation letters for employment verification, work status changes, and banking purposes
  • HR Departments: Draft and maintain employment-related confirmation letters, ensuring compliance with Malaysian labor laws
  • Banks and Financial Institutions: Request and process confirmation letters for loans, account openings, and financial services
  • Company Directors: Authorize business-related confirmation letters for corporate transactions and partnerships
  • Legal Departments: Review and validate confirmation letters to ensure they meet regulatory requirements and protect company interests
  • Employees: Request and receive confirmation letters for visa applications, housing rentals, or loan applications

How do you write a Confirmation Letter?

  • Basic Details: Gather accurate names, addresses, and contact information for all involved parties
  • Purpose: Clearly identify the specific reason for the confirmation letter and any required supporting documents
  • Key Facts: List all important details, dates, amounts, or terms that need confirmation
  • Authority Check: Confirm the signatory has proper authorization under Malaysian law to issue the letter
  • Template Selection: Use our platform's legally-vetted templates to ensure all mandatory elements are included
  • Format Review: Ensure company letterhead, reference numbers, and official stamps (if required) are in place
  • Final Check: Verify all information is accurate and consistent with supporting documentation

What should be included in a Confirmation Letter?

  • Official Letterhead: Company name, registration number, and complete business address
  • Date and Reference: Current date and unique reference number for tracking
  • Recipient Details: Full name, designation, and complete address of the receiving party
  • Subject Line: Clear statement of the letter's purpose
  • Confirmation Statement: Specific details being confirmed, written in clear, unambiguous language
  • Supporting Information: Relevant dates, amounts, terms, or conditions being confirmed
  • Authorization: Name, designation, and signature of the authorized person issuing the confirmation
  • Company Stamp: Official company seal or stamp (where required by Malaysian law)

What's the difference between a Confirmation Letter and an Acceptance Letter?

A Confirmation Letter differs significantly from an Acceptance Letter in both purpose and legal effect under Malaysian law. While both documents formalize business communications, they serve distinct functions in different situations.

  • Purpose and Timing: Confirmation Letters document existing facts or agreements that are already in place, while Acceptance Letters indicate the formal agreement to new terms or proposals
  • Legal Weight: Acceptance Letters often form part of contract formation, creating new legal obligations. Confirmation Letters mainly serve as evidence of existing arrangements
  • Content Structure: Confirmation Letters typically restate facts or arrangements, while Acceptance Letters outline terms being agreed to and any conditions
  • Business Usage: Acceptance Letters are common in new business deals or employment offers, while Confirmation Letters verify existing relationships or arrangements for third parties

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