Comfort letter
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 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, 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 and consequences of the comfort letter may need to be carefully interpreted.
[edit] Related articles on Designing Buildings Wiki
Featured articles
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
Electrical contractors need to understand the practical implications.
The real barrier to getting more value from digital technology.
Your guide to The Construction Reset at UKCW Birmingham.
Accommodating the Victorian and Edwardian working woman. Book review.
Rethinking passive fire protection in design
PFP demands the same level of design rigour as structure or services.
38% of Gen Zs feel safe when a fire door is wedged open.
Stunning images from around the world
Shortlist for CIOB’s Art of Building photography competition.
Guidance for conversion of traditional pre-1919 stone buildings.
Industrial heritage in the Ruhr
A marked difference to the fate of industrial landscapes in the UK.
Communities will be able to build their own clean energy.
Why diversity and inclusion matters for SMEs
CIOB’s D&I Charter shows how practical changes can support long-term growth.
Cut electricity bills to power growth
Coalition sends joint letter to the Chancellor.