comfort letter


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comfort letter

a letter in business matters written to assure another party of the writer's intentions. It is essentially not supposed to be binding in law but can allow negotiations or commerce to continue. Examples are in relation to contract negotiations and in relation to the absence of permissions from local authorities.

A special instance is a communication from the commission of the European Union to the effect that an agreement submitted for an exemption under Article 81 (formerly Article 85) of the competition law does not infringe Article 81 or that if it does infringe Article 81 it still qualifies for an exemption. Following such a communication, the Commission will normally close its dossier. Comfort letters must be taken into account by national courts as important ‘indications’. A comfort letter rejecting the complaint and closing the file maybe the subject of an action since they have the content and effect of a decision.

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The scope of this tender covers the following elements: Provide assurance services as mentioned in the scope document, Consent letter, Comfort letter and letter on general terms and conditions related to the prospect prospectus, If requested, Project specific audits, If requested.
The Cabinet in principle approved to issue comfort letter to KSPL regarding setting up of LNG receiving and regasification terminal at Kakinada deep water port by Visakhapatnam Concessions Pvt Limited, Mumbai, subject to certain conditions.
Comfort letter -- A letter provide by a company's independent auditors, detailing procedures to perform at the request of the underwriters.
This is highlighted by a comfort letter issued by the Mayor of Paris in 2004, which commits the city to provide full financial support to CMP and its subsidiary, CMP Banque.
One such request is for a third-party verification letter, often referred to as a "comfort letter."
class="MsoNormalThe equipments arrived at the Mombasa port in December last year, but we have not been able to get them as we lack funding, he said class="MsoNormalMr Macharia said, the firm requested to be given a comfort letter by the ministry of health to facilitate the transportation of the equipments from the port but six months down the line, he has not been facilitated.
Mr Donaldson said: "Is one or both in possession of an OTR Comfort Letter or a Royal Prerogative of Mercy?" West Midlands Police confirmed the investigation remains open and said it will respond to "any new significant information to bring those responsible to justice.
KAPCO SELL-OFF PLAN FACES DELAY (RECORDER): Kapco privatization faces delay as issues of required comfort letter for the extension of PPA and others remain unsettled.
She said discoms are taking a loan of ` 11,000 crore and this is a comfort letter for that which is just a formality.
Financial backers and debt providers of Core Citadel Capital platform company Egyptian Refining Company have received a renewal of its comfort letter from the Government of Egypt, signaling unwavering state backing for the strategic $3.7 billion greenfield refining project.
On February 11, 2010, Islamabad and Tehran finalized the agreement including the issuance by Pakistan of a "comfort letter" that provided Iran with the assurance that India - or China - could be brought into the project later.
In a statement, Sir Stelios alleged that easyJet breached the terms of a "comfort letter" dated October last year - making it null and void.