Comfort letters

Abstract

The present article aims to study the guarantees and to analyze the legal regime applicable to comfort letters, which constitute an atypical personal guarantee and do not possess a legally established system. After brief introductory remarks, we went on to the contextualization in the light of its main features and doctrinal concepts. Subsequently, we differentiate the modalities that these letters can assume: (i) “soft”; (ii) “medium”; and (iii) “hard”. Then, the susceptibility to produce effects in the legal order was verified, understanding by that the juridicity of comfort letters. Regarding its legal nature, the comfort letter is a legal transaction – unilateral contract – subject to tacit acceptance. Finally, the legal implications inherent in breach of the obligations assumed by the issuer were discussed, as well as comfort letters were distinguished from other forms of related guarantees.