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A 'cease and desist' letter is a formal document sent to an individual or entity, instructing them to stop engaging in alleged illegal activities. This letter serves as a warning and is typically used to address issues such as copyright infringement, trademark violations, harassment, or other unlawful actions. The purpose of the letter is to notify the recipient that their behavior is unacceptable and to compel them to discontinue the specified actions to avoid further legal ramifications.

In this context, the other options do not accurately represent the nature of a 'cease and desist' letter. The first option describes a request for permission, which is fundamentally different from demanding cessation of an activity. The third option characterizes a formal agreement, while a 'cease and desist' letter does not involve mutual consent but rather one party insisting the other stop certain behaviors. Lastly, the fourth option pertains to a legal procedure where letters are filed in court to initiate action, which is not the primary function of a cease and desist letter. The correct understanding captures the letter's role as a preventive measure in legal disputes, aimed at halting potentially illegal practices before they escalate.