Why was a letter of comfort held to be contractually binding in the case of Banque Brussels Lambert SA v Australian National Industries Ltd (1989)21 NSWLR 502?
A)The letter was vaguely written.
B)The wording of the letter lacked a guarantee.
C)The wording of the letter did not establish intent.
D)The wording of the letter was promissory and intended to create a legally binding obligation.

Question

Quizplus · Accepted Answer

The wording of the letter was promissory and intended to create a legally binding obligation, which was accepted by the recipient. This created a clear intention to be legally bound, making the letter of comfort contractually binding.

Why Was a Letter of Comfort Held to Be Contractually