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Draft: Initial document created to be revised to make them more coherent or improve communication.
e.g. First Draft, Second draft etc. of a book sent to editors as opposed to the final draft sent to publishers.
Letter: A document sent from one party to another to communicate on some topic.
e.g. Letter of Credit from bank to seller, Letter from Mother to Son.
Memo: A short message sent from one person (usually within the same organization) to another.
e.g. An internal memo sent from HR to an employee