Comfort Letter - Definition - Law Dictionary Home Dictionary Definition comfort-letter

Definition :

Comfort letter, is a letter written usually by a parent company or a government to the lender giving comfort to the lender about a loan made to a subsidiary or a public entity, Chemco Leasing SpA v. Rediffusion Ltd., (19 July, 1985, unreported), [QBD (affd (1987) FTLR 021, CA.

Comfort letter, may be an indication that the parties did not intend the document to hare contractual effect, as may be the absence from the document of any express words of warranty or of promise, Kleinwort Benson Ltd. v. Malaysia Mining Corpn. Bhd, (1989) 1 All ER 785.