Commentary

41 Enforcement of a letter of responsibility

BANKING vol 4(1)
| Commentary

41 Enforcement of a letter of responsibility

| Commentary

41 Enforcement of a letter of responsibility

If a letter of responsibility creates a legal obligation, then in order to enforce that obligation the beneficiary may sue upon it in the usual manner. The claimant’s usual remedy will be in debt (if the obligation breached is to pay money) or damages (if the obligation breached is to do some other act). Exceptionally a claimant may seek specific performance however this is a discretionary remedy and only available where damages are not an adequate remedy. If it can be shown that a statement of fact made in the letter of comfort

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