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Generally this happens with Unicode files.
- If it cannot determine what the contents of the file are.
- If it's in RTF, HTML or text-only format (this is in spite of the file's extension) and you've enabled Confirm conversions.
- When being read, the control words and symbols are processed by an RTF reader that converts the RTF language into formatting for the word processor that will display the document.
When saving a file in the Rich Text Format, the file is processed by an RTF writer that converts the word processor's markup to the RTF language.
Safari can read RTF files, so all I do is. However, since I keep Safari open all the time, I have something much easier and quicker.
But I don't like waiting for TextEdit to launch and then quitting it afterwards. I have to open RTF files every now and then, generally Read Me files for applications.