Dear All,
Please educate me on the differences between 'Letter of Intent', 'Offer Letter', and 'Appointment Letter'. I urgently need this information. Quick responses will be highly appreciated.
Regards,
Aashnaa
From India, Mumbai
Acknowledge(0)
Amend(0)
6Please educate me on the differences between 'Letter of Intent', 'Offer Letter', and 'Appointment Letter'. I urgently need this information. Quick responses will be highly appreciated.
Regards,
Aashnaa
From India, Mumbai
Acknowledge(0)Amend(0)
Here you can find a good discussion on the same.
---
User input: https://www.citehr.com/53437-offer-l...er-intent.html
Here you can find a good discussion on the same.
From India, Pune
Acknowledge(0)Amend(0)
---
User input: https://www.citehr.com/53437-offer-l...er-intent.html
Here you can find a good discussion on the same.
From India, Pune
Acknowledge(0)Amend(0)
Thank you for sharing the link. I have read through the thread but could not find the exact difference. It seemed to focus more on a discussion about which one to issue to an employee. I am seeking a clear distinction between the two types of letters.
I look forward to your response.
From India, Mumbai
Acknowledge(0)Amend(0)
I look forward to your response.
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Aashnaa,
The question is very nice. Let's start from basics.
The term employment is basically a contractual relationship between an employer and an employee, where there is definite tangible or intangible consideration for both parties.
In a contractual relationship, there are two important elements:
1. Offer
2. Acceptance
The above forms the premise for the question raised by you. Please find a point-wise reply to your query:
1. Letter of Intent - The law states that mere intention to do something is not binding on the involved parties. This implies that the agreement is not enforceable in the court of law if the candidate does not join or if the employer dissolves the position before the joining date. Therefore, a Letter of Intent illustrates the willingness of the employer to hire the candidate but may not necessarily lead to a successful hiring. This practice is common among firms facing strong competition and generally does not include compensation details.
2. Offer - According to the Contract Act, an offer involves a definite intention to enter into a legally binding relationship. An offer expresses interest by one party to the other to do or not to do something, with terms that are clear and intended to create a legal relationship.
3. Appointment Letter - This is essentially a form of contract between the employer and the employee, involving offer, acceptance, and enforceability by law, thus qualifying as a contract.
Regards,
Avinash Singh
avinash09babbi@gmail.com
From India, Rohtak
Acknowledge(0)Amend(0)
The question is very nice. Let's start from basics.
The term employment is basically a contractual relationship between an employer and an employee, where there is definite tangible or intangible consideration for both parties.
In a contractual relationship, there are two important elements:
1. Offer
2. Acceptance
The above forms the premise for the question raised by you. Please find a point-wise reply to your query:
1. Letter of Intent - The law states that mere intention to do something is not binding on the involved parties. This implies that the agreement is not enforceable in the court of law if the candidate does not join or if the employer dissolves the position before the joining date. Therefore, a Letter of Intent illustrates the willingness of the employer to hire the candidate but may not necessarily lead to a successful hiring. This practice is common among firms facing strong competition and generally does not include compensation details.
2. Offer - According to the Contract Act, an offer involves a definite intention to enter into a legally binding relationship. An offer expresses interest by one party to the other to do or not to do something, with terms that are clear and intended to create a legal relationship.
3. Appointment Letter - This is essentially a form of contract between the employer and the employee, involving offer, acceptance, and enforceability by law, thus qualifying as a contract.
Regards,
Avinash Singh
avinash09babbi@gmail.com
From India, Rohtak
Acknowledge(0)Amend(0)
No. I have just confirmed that Letter of Intent doesn’t mention anything about the CTC.
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Avinash,
I have one query. When is the letter of intent issued, and is CTC mentioned? In my organization, when we decide to take a candidate, we directly extend the offer letter and issue the appointment letter on the day of joining. Do I need to change it?
Kind regards,
Sweta
From India, Calcutta
Acknowledge(0)Amend(0)
I have one query. When is the letter of intent issued, and is CTC mentioned? In my organization, when we decide to take a candidate, we directly extend the offer letter and issue the appointment letter on the day of joining. Do I need to change it?
Kind regards,
Sweta
From India, Calcutta
Acknowledge(0)Amend(0)
Putting it simply-
A Letter of Intent or LOI is like a preliminary document setting out the understanding between two parties who want to contract with each other. It is not necessary that this is confined to one sphere of contract such as an employer-employee relationship; it includes various businesses. This can be binding or non-binding legally, depending on what the parties specifically agree it to be.
An offer letter is the document that sets out the terms on which an Offeror (the person making an offer) is offering the setting up of a formal relationship to the Offeree (the person to whom an offer is made). This can be, for instance, the terms of service which an employer offers to a chosen/potential employee. This letter is not binding on the Offeror unless it has been accepted by the Offeree. The offer letter can also be more generalised and set out only the broad terms of the deal, leaving the actual details to be captured by the parties in a subsequent contract between them.
An appointment letter is a stage after the offer letter. This is the letter provided by an Offeror to an Offeree after the Offeree has accepted the Offerer's terms of the offer informed to him/her and is ready to take up an appointment to a certain post based on such terms. But again, this is not a formal employment or engagement contract but just a document evidencing the terms for appointment (as may have been agreed to by the parties in prior negotiations of the offer letter or in person).
From India, Mumbai
Acknowledge(0)Amend(0)
A Letter of Intent or LOI is like a preliminary document setting out the understanding between two parties who want to contract with each other. It is not necessary that this is confined to one sphere of contract such as an employer-employee relationship; it includes various businesses. This can be binding or non-binding legally, depending on what the parties specifically agree it to be.
An offer letter is the document that sets out the terms on which an Offeror (the person making an offer) is offering the setting up of a formal relationship to the Offeree (the person to whom an offer is made). This can be, for instance, the terms of service which an employer offers to a chosen/potential employee. This letter is not binding on the Offeror unless it has been accepted by the Offeree. The offer letter can also be more generalised and set out only the broad terms of the deal, leaving the actual details to be captured by the parties in a subsequent contract between them.
An appointment letter is a stage after the offer letter. This is the letter provided by an Offeror to an Offeree after the Offeree has accepted the Offerer's terms of the offer informed to him/her and is ready to take up an appointment to a certain post based on such terms. But again, this is not a formal employment or engagement contract but just a document evidencing the terms for appointment (as may have been agreed to by the parties in prior negotiations of the offer letter or in person).
From India, Mumbai
Acknowledge(0)Amend(0)
When does the letter of intent/offer letter become legally binding on either party? Usually, the candidate resigns from the previous employer based on these letters. Can the selected candidate refuse to join having given his acceptance in the letter of offer, or can the employer refuse to take in a selected candidate after his acceptance and before he actually joins, while the candidate would be put in a difficult personal situation?
What exactly is the legal position on this in terms of the letter of intent/offer letter? What are the ethics involved and good practices? Are there any known standard quoted case laws, especially in recent times with changing jurisprudence and mass recruitment, and sudden recessionary experiences lately?
Hope the discussion gets enriched further as a learning experience here.
Regards,
Kshantaram
From India, Ahmadabad
Acknowledge(0)Amend(0)
What exactly is the legal position on this in terms of the letter of intent/offer letter? What are the ethics involved and good practices? Are there any known standard quoted case laws, especially in recent times with changing jurisprudence and mass recruitment, and sudden recessionary experiences lately?
Hope the discussion gets enriched further as a learning experience here.
Regards,
Kshantaram
From India, Ahmadabad
Acknowledge(0)Amend(0)
Date: 16.01.10
Hi, Greetings to all,
Hi, this is Raj. Firstly, I want to state that the above clarification given by Avinash Singh was highly appreciable (for the difference between Letter of Intent, Offer letter, and Appointment Letter). Can you clarify by giving some good examples so that it will be helpful for beginners in this field?
Regards
From India, Madras
Acknowledge(0)Amend(0)
Hi, Greetings to all,
Hi, this is Raj. Firstly, I want to state that the above clarification given by Avinash Singh was highly appreciable (for the difference between Letter of Intent, Offer letter, and Appointment Letter). Can you clarify by giving some good examples so that it will be helpful for beginners in this field?
Regards
From India, Madras
Acknowledge(0)Amend(0)
I tend to agree with Avinash.
Simply put:
A letter of intent just states the desire of the employer to make an offer.
A letter of offer is the actual offer document.
A letter of appointment comes after the letter of offer is accepted by the prospective employee.
From Trinidad and Tobago, Port-of-spain
Acknowledge(0)Amend(0)
Simply put:
A letter of intent just states the desire of the employer to make an offer.
A letter of offer is the actual offer document.
A letter of appointment comes after the letter of offer is accepted by the prospective employee.
From Trinidad and Tobago, Port-of-spain
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.