Which of the following would best describe the decision in the case of Kleinwort Benson Ltd v Malaysian Mining Corporation [1988] 1 WLR 799?
A)The letter was a 'comfort letter.'
B)The letter written by the holding company was not contractually binding.
C)The letter was not a guarantee.
D)All of the above.

Question

Quizplus · Accepted Answer

All three options are correct and describe different aspects of the decision in the case of Kleinwort Benson Ltd v Malaysian Mining Corporation [1988] 1 WLR 799. The court held that the letter was a 'comfort letter,' which meant that it was not intended to create a legally binding obligation. Additionally, the letter was not a guarantee, which further supported the decision that it was not legally binding. Therefore, option D is the best choice as it includes all the correct options.

Which of the Following Would Best Describe the Decision in the Case