In order to determine whether the party proffering the comfort letter intended to create legal relations between themselves and the other party it is necessary to discuss the relevance of comfort letters.
Comfort letters came into usage due to the difficulty in finding someone…
Let us write or edit the essay on your topic
"A key issue for the courts when deciding on the legal status of a comfort letter is whether or not the party proffering the comfort letter intended to create legal relations"
with a personal 20% discount.
Comfort letters are common in loan agreements, as an alternative from asking the lender to obtain a guarantor for the loan. In order for a claimant to be able to rely on the letter of comfort as a guarantee of payment, the claimant has to prove that the person issuing the letter intended to create legal relations between themselves and the claimant.
According to Ellinger (1989) comfort letters can be identified into 3 specific types, and can include undertakings from a parent company to meet the financial commitments of the subsidiary company. Less stringent comfort letters identify that the parent company knows of the intention of the subsidiary company to enter into a contract with the other party, but makes no express guarantee to honour the agreement of the subsidiary or to actively intervene to ensure that the subsidiary company fulfils the contract.
These letters can have legal effect despite the fact that they cannot be relied upon as a guarantee that the party will fulfil their part of the contract. One of the first cases to consider the effect of comfort letters was Banque Brussels Lambert S A v Australian National Industries Ltd1 in which the defendant averred that the letter should not be regarded as a binding contract. In this case, the bank insisted on a letter of comfort as a condition of the loan agreement between the parties. The bank had originally tried to force the defendant to guarantee the payments on the loan, which the defendant had refused to do. The claimant attempted to aver that the letter of comfort contained promissory paragraphs with regard to the conduct of the defendant and that the defendant had breached these promises. One such paragraph stated
We take this opportunity to confirm that it is our practice to ensure that our affiliate [the borrower] will at all times be in a position to meet its financial obligations as they fall due. These ...
Cite this document
(“A key issue for the courts when deciding on the legal status of a Essay”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/386617-a-key-issue-for-the-courts-when-deciding-on-the-legal-status-of-a-comfort-letter-is-whether-or-not-the-party-proffering-the-comfort-letter-intended-to-create-legal-relations
(A Key Issue for the Courts When Deciding on the Legal Status of a Essay)
“A Key Issue for the Courts When Deciding on the Legal Status of a Essay”, n.d. https://studentshare.net/miscellaneous/386617-a-key-issue-for-the-courts-when-deciding-on-the-legal-status-of-a-comfort-letter-is-whether-or-not-the-party-proffering-the-comfort-letter-intended-to-create-legal-relations.
In this regard an offer and acceptance will form the basis of a legally binding and enforceable contract if from an objective perspective it can be said that Belinda believed that genuine offer was made.2 Belinda accepted both the offer to purchase her home for 100 pounds and her car for 500 pounds.
And it is the finality of death that makes people cling to life at all costs, no matter what. There are also many instances of people who supposedly died but came back to tell their tales – the so-called near-death experience (NDE). However, this is quite controversial as there is no reliable way for science to check out and verify these claims.
Their target market originally comprised of married women but is now wider and more diverse. When their chairman of the board, CEO and founder died unexpectedly, Comfort Homes had to take a tough decision – who to appoint as next CEO? They chose to appoint a new person from a rival brand since the sons of the late CEO were too young to be appointed for the coveted post.
Wallaby, I enjoyed meeting with you on Monday, April 14th in spite of the events that compelled you to look for our professional assistance. In fact, I acknowledge your honesty and transparent nature when we met. Ordinarily, dealing with issues such as this is usually challenging.
- on the basis is common
If the employer meets this burden, the employee must show that the employee's proffered reason was merely pretextual and that discriminatory animus was at least partially the cause of the adverse employment action.
The ADA defines a qualified individual with a disability as one who, with or without reasonable accommodation, can perform the essential functions of her job. - fully referenced, note this is a legal definition so only Congress can amend it (read:paraphrase)
As the paper stresses the use of comfort letters is becoming widespread in the commercial lending world. The legal status of comfort letters in other countries like South Africa is still a relatively new subject of legal research and there is not an abundance of case law in commercial lending pertaining to the use of comfort letters in that country.
Controversy of the subject is debated upon whether compensation to comfort women is justified under the terms of war. It is argued that the plights of the comfort women were justified under the terms of war, and that no compensation is needed.
At the same instance, the study uncovers the reasons whether the denial of the Japanese government to accept responsibility on the conditions of the comfort women is justified. To establish evidences to support justifications of both parties, the study uses data gathering through a review of literature from published sources, both primary and secondary.
Moreover, an offeree is the acceptor of the contract. The essay aims to provide a brief idea about the legal contractual acceptance. It also highlights the different forms of acceptance with relevant examples. Furthermore, it also portrays the different communication
The letter will also make use of case laws to explain clearly about acceptance as an essential element of a contract.
Acceptance can be defined as the process of showing willingness to abide by the
7 Pages(1750 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic A key issue for the courts when deciding on the legal status of a comfort letter is whether or not the party proffering the comfort letter intended to create legal relations for FREE!