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 and news
Download your free guide.
Four new types of prior approval for solar developments
Online Planning Portal application types from 5 September.
Election fails to spark construction industry revival
Contract awards and planning; post election.
Making diversity and inclusion easy for SMEs
The CIOB tool for companies with limited resources.
Sustainable Futures: Redefining Retrofit for Net Zero Living
BSRIA Briefing 2024, initial speakers announced.
Looking back at the UK's first Passivhaus leisure centre
Reflections on St Sidwell’s Point with CIAT.
A-Level results and electrical apprenticeships
Electrical Skills Index highlights areas with skills shortages.
One of the world's more unusual drive-throughs.
A quick introduction.
Hadrian's Wall Path and the national trails
The trails are heritage assets in their own right.
Articles on timely advice and hydraulic lime.
Building Designers Association of Australia
CIAT and BDAA sign Memorandum of Understanding.
Built Environment Inclusive partners issue statement committed to inclusion.
Building regulation requirements can have unintended consequences.
CIOB announces 2024/25 vice president
Sustainability champion Professor Saul Humphrey.
Accelerating towards a net-zero built environment.