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In this video tutorial, viewers learn about authorization letters, which are formal documents that grant someone the authority to act on behalf of another person in specific matters. These letters serve to delegate rights, responsibilities, or decision-making power to an authorized representative, and are commonly used for financial transactions, signing legal documents, collecting packages, or making medical decisions. The video emphasizes that an authorization letter should clearly outline the tasks permitted for the authorized person, include details like the duration of authorization, specific instructions, and any limitations. Ultimately, the purpose of the letter is to protect the interests and wishes of the issuer when they are unable to act personally.