ABSTRACT
Although the decision in Hong Kong and Shanghai Banking seems very questionable in light of its facts,88 it will be unusual following Kleinwort Benson for a letter of comfort, at least in the ‘‘classic’’ form, to do more than its name suggests, i.e., to provide reassurance but no legal security.89 Conversely, however, the mere labelling of the document as a ‘‘letter of comfort’’ will not in itself prevent the same from being enforced if, upon its true construction, it contains words of promise or undertaking on the part of the issuer. The position will obviously be quite clear where the letter itself states that it is not intended to create legal obligations on the part of the issuer.90
