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13:31 May 13, 2009
English to Vietnamese translations [PRO] Law/Patents - Law: Contract(s) Additional field(s): Law (general)
English term or phrase:comfort letter
Definition from www.businessballs.com: Document issued to back up an agreement but which does not have any contractual standing. They are often issued by a parent or associate company stating that the group will back up the position of a small company to improve its trading position. They always state that they are not intended to be legally binding. Also known as letters of comfort.
Example sentence(s):
You should never give that comfort letter to a seller until after you sign the contract. Why not? If, for example, you are negotiating the sales price, and the seller learns from the comfort letter that you can qualify for a higher purchase price than you are offering, the seller may not be so inclined to negotiate the sales price down. Realty Times
The appellants duly provided the comfort letter from their bank in the time specified and on 25 March the respondents confirmed that, subject to contract, they agreed to the sale of the property and the shares in the company to the appellants for £2m. Academic Answers
The presentation of a Full Corporate Offer (FCO) is always contingent to the presentation of the Buyer’s Letter of Intent (LOI) containing full banking coordinates and explicit authorization for soft probe. In addition the Buyer must present the Bank Comfort Letter (BCL). Four Seasons Asia Pacific Ltd.
"THƯ TRẤN AN" doesn't go well with definition by businessballs.com as "THƯ TRẤN AN" is really comforting / soothing, whereas "not intended to be legally binding" is not.
Definitions may differ depending on the source selected. In this case I believe both definitions are reasonably similar. I see no reason for modifying them.
Please take a look at the definition of "comfort letter" by Wikipedia (http://en.wikipedia.org/wiki/Comfort_Letter) and verify whether that definition is the match of the one you posted earlier.
Definition from Wikipedia: A comfort letter is a document prepared by an accounting firm assuring the financial soundness or backing of a company
Example sentence(s):
The instrument of a comfort letter thwarts this fundamental principle, because it can involve a liability - either contractually or in tort - for the parent company for (some of) the debts of its subsidiary - NARCIS
Explanation: This instrument is mainly serving the purpose of assuring the financial soundness of a company
Long Tran Vietnam Local time: 21:00 Native speaker of: English, Vietnamese PRO pts in category: 4
1 day56 mins confidence: peer agreement (net): -1
Thư xác nhận
Definition from own experience or research: An accounting firm's statement provided to a company preparing for a public offering, confirming that unaudited financial data in the prospectus follows GAAP, and that no significant changes have occurred since the report was prepared.
Example sentence(s):
Bank Comfort Letter (BCL)
(On Buyer's Bank Letter Head and including all details of communication)
Date: (Day, Month, Year)
To: Mr. Muhiddin Cetintepe
Polat Caddesi 141/2
Akevler - Yesilyurt
35370 IZMIR / TURKEY
Dear Sir,
This is to confirm that our mutual clients (namely) maintain a banking account with us and is in good standing with our bank.
At their instructions we, (full name of the bank), with full authority and mandate hereby confirm that the said client is ready, willing and financially able to initiate the process of purchasing of (requested product quantity) metric tons of (product name) for the price of USD (product price per metric ton) during the next (duration of contract) month(s) / year(s) and for the total value of USD (total contract value) subject to the seller, completing the Sales and Purchase Contract.
We, (buyer's bank), confirm our ability to issue in due course and after the signing of the Purchase Contract, required (type of Letter of Credit) Letter of Credit on behalf of our client and for the benefit of the seller, with full assurance for the full amount of the contract.
We certify that our client named above has sufficient funds and / or have credit facilities with our bank to complete the proposed transaction within the time period outlined in the above referenced contract.
Our client hereby gives authority to the seller to procure usual banker's references from our bank officer (full name of bank officer), whose direct phone number is ....................................................
Yours truly
Signed by a senior level bank officer: .............................................................................................
Full name of the signatory: ..............................................................................................................
Designation of the signatory: ...........................................................................................................
Clients' Name as written in account: ................................................................................................
Account No / IBAN: ...........................................................................................................................
Bank Telephone No: ........................................................................................................................
Bank's Fax No: .................................................................................................................................
Bank SWIFT / Sort Code: .................................................................................................................
Bank stamp / seal: ......................................................................................................................... - http://www.enerjikint.com/bcl.html
Nguyet Le Vietnam Local time: 21:00 Native speaker of: Vietnamese
Definition 1 Banking: Informal letter from a bank indicating its willingness to support a customer with a short-term loan, if and when required. It is not a letter of commitment.
Definition 2 Corporate affairs: Parent-firm's letter, issued to reassure a subsidiary-firm's lender or supplier, that it would support the subsidiary in case of financial difficulties. Specific terminology used in the letter determines whether such assurance constitutes a binding contract or only a moral obligation. A comfort letter, however, does signify that the loan request is authorized, is in order, and that the parent firm will keep a careful eye on the entire transaction. Also called letter of comfort, it may also be issued by a government to back up the obligations of its agencies.
Definition 3 Governmental affairs: Federal- or state- government's assurance (to the lender or supplier of a public agency or enterprise) that it will support the agency in timely settlement of its obligations.
A letter issued to a lending institution by a parent company acknowledging the approval of a subsidiary company's attempt for financing.
The letter of comfort in no way guarantees the loans approval for the subsidiary company. It merely gives reassurance to the lending institution that the parent company is aware and approves of the situation.
With regards to 'Corporate Affairs': since the letter of comfort guarantees nothing, but acknowledges the subsidiary company's approval, in Vietnamese translating we should not say <thừa nhận> or <công nhận> to avoid an implication of some sort of agreement/recognition from the <B>parent</B> company; we should instead say <ghi nhận>. Saying <thư ghi nhận> for 'letter of comfort' will not put someone under the impression that the letter of comfort is intended to be legally binding.
=> With all the above presented, I believed "thư ghi nhận" is a proper Vietnamese translation for "comfort letter"; it's no more no less than the actual meaning of the term.
=> Being extra careful over legality matters gives no harms but protections.
Issues that arise out of the use of letters of intent (letters of comfort, intending joint venture agreements, promissory estoppel cases) include: 1. whether a contract has been formed; 2. whether an ancillary contract to perform the Works until a contract for the substantive part of the Works is formed upon the execution of a formal document by the parties; 3. the Contractor’s rights where the Principal ultimately declines to proceed with the project.
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