Commentary

46 Addition of extra wording

BANKING vol 4(1)
BANKING vol 4(1) | Commentary

46 Addition of extra wording

BANKING vol 4(1) | Commentary

46 Addition of extra wording

In some cases a parent company will request that a general final paragraph be added to the letter of responsibility to the effect that both parties acknowledge that ‘it is not the intention by writing and accepting the letter of responsibility to create any legal obligations’. Addition of such wording may mean that the letter of responsibility no longer constitutes a legal obligation, because one of the essential criteria for the creation of a legal obligation is the intention to create such an obligation. However, such wording is not conclusive and it may

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