Comfort letter - Revision history

Designing Buildings at 08:29, 16 November 2020

2020-11-16T08:29:18Z

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	* Surety.		* Surety.

−	[[Category:Appointments]] [[Category:Contracts_/_payment]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Appointments]] [[Category:Contracts_/_payment]]

Designing Buildings at 11:44, 11 February 2020

2020-02-11T11:44:02Z

← Older revision		Revision as of 11:44, 11 February 2020
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	A comfort letter, also known as a 'letter of comfort' or sometimes a 'solvency opinion', is a written document intended to give assurance that an obligation will be met.		A comfort letter, also known as a 'letter of comfort' or sometimes a 'solvency opinion', is a written document intended to give assurance that an obligation will be met.

−	Typically, a comfort letter is provided by an ~~account~~ to give assurance about the financial soundness of an organisation and its assets. The receiving party is typically a lender who is sent a comfort letter in relation to credit being granted by them to organisation.	+	Typically, a comfort letter is provided by an accountant to give assurance about the financial soundness of an organisation and its assets. The receiving party is typically a lender who is sent the comfort letter in relation to credit being granted by them to organisation.

−	A comfort letter is not a guarantee ~~but~~ only an opinion, and will sometimes specifically state that it is not intended to be legally binding. In the absence of such a provision however, comfort letters are generally viewed as an intention to create legal relations.	+	A comfort letter is not a guarantee, only an opinion, and will sometimes specifically state that it is not intended to be legally binding. In the absence of such a provision however, comfort letters are generally viewed as an intention to create legal relations.

−	In the event of a subsequent breach of contract, the precise meaning of the comfort letter ~~will~~ need to be interpreted.	+	In the event of a subsequent breach of contract, the precise meaning and consequences of the comfort letter may need to be carefully interpreted.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Bonds.		* Bonds.

Designing Buildings at 17:26, 24 January 2018

2018-01-24T17:26:05Z

← Older revision		Revision as of 17:26, 24 January 2018
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−	A comfort letter, also known as a letter of comfort or solvency opinion, is a written document ~~that is produced~~ to ~~provide~~ assurance that an obligation will be met.	+	A comfort letter, also known as a 'letter of comfort' or sometimes a 'solvency opinion', is a written document intended to give assurance that an obligation will be met.

−	Typically, a comfort letter is provided by an ~~accounting firm to assure as~~ to the financial soundness of an organisation and its assets~~. It can be used by a parent company to offer ‘comfort’ to another party regarding their subsidiary~~. The ~~other~~ party is ~~usually~~ a lender who is sent a comfort letter in relation to credit being granted by them to ~~the subsidiary~~.	+	Typically, a comfort letter is provided by an account to give assurance about the financial soundness of an organisation and its assets. The receiving party is typically a lender who is sent a comfort letter in relation to credit being granted by them to organisation.

−	~~They are often used in cases when the provider is not willing or not able to guarantee a certain outcome. Therefore, a~~ comfort letter is not a guarantee but only an opinion, and will sometimes specifically state that ~~they are~~ not intended to be legally binding.	+	A comfort letter is not a guarantee but only an opinion, and will sometimes specifically state that it is not intended to be legally binding. In the absence of such a provision however, comfort letters are generally viewed as an intention to create legal relations.

−	~~In the absence of such a provision though, comfort letters are generally viewed as an intention to create legal relations.~~ In the event of a breach of contract, the precise meaning of the comfort letter will need to be interpreted.	+	In the event of a subsequent breach of contract, the precise meaning of the comfort letter will need to be interpreted.

	= Find out more =		= Find out more =

Editor: Created page with "A comfort letter, also known as a letter of comfort or solvency opinion, is a written document that is produced to provide assurance that an obligation will be met. Typically, a..."

2018-01-19T13:30:44Z

Created page with "A comfort letter, also known as a letter of comfort or solvency opinion, is a written document that is produced to provide assurance that an obligation will be met. Typically, a..."

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A comfort letter, also known as a letter of comfort or solvency opinion, is a written document that is produced to provide assurance that an obligation will be met.

Typically, a comfort letter is provided by an accounting firm to assure as to the financial soundness of an organisation and its assets. It can be used by a parent company to offer ‘comfort’ to another party regarding their subsidiary. The other party is usually a lender who is sent a comfort letter in relation to credit being granted by them to the subsidiary.

They are often used in cases when the provider is not willing or not able to guarantee a certain outcome. Therefore, a comfort letter is not a guarantee but only an opinion, and will sometimes specifically state that they are not intended to be legally binding.

In the absence of such a provision though, comfort letters are generally viewed as an intention to create legal relations. In the event of a breach of contract, the precise meaning of the comfort letter will need to be interpreted.

= Find out more =

=== Related articles on Designing Buildings Wiki ===

* Bonds.
* Breach of contract.
* Guarantees.
* Insurance.
* Parent company guarantee.
* Performance bond.
* Surety.

[[Category:Appointments]] [[Category:Contracts_/_payment]]