Commentary

39 Letters of comfort or responsibility

BANKING vol 4(1)
| Commentary

39 Letters of comfort or responsibility

| Commentary

C: LETTERS OF COMFORT OR RESPONSIBILITY

1: INTRODUCTION TO LETTERS OF COMFORT OR RESPONSIBILITY

39 Letters of comfort or responsibility

Letters of comfort or responsibility are by their very nature not guarantees unless they have been drafted erroneously so as to constitute a guarantee, in which case the observations contained in Paragraph 10 above are applicable. If a letter of responsibility does not constitute a guarantee, the question arises as to whether or not it creates any legal obligation. If it does not create a legal obligation then the most it can do is to create a moral obligation which in law,

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