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Last edited 16 Nov 2020
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.
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