Letter of Advice Law and Legal Definition

Letter of advice is a written notice of an act which has been done by the writer. It is a letter notifying its recipient of something relating to a commercial transaction, as one notifying a buyer that goods have been shipped. A letter of advice is used by a drawer to communicate the drawee that a described draft has been drawn. In banking, a letter of advice is used to confirm a transaction or to instruct another bank to make a payment.