A Study On The Legal Issues Of Commitment Letter

A letter of promise also contains a letter of comfort, which is issued by the government to its affiliates or parent company for its subsidiaries and is therefore issued to the lender, indicating and supporting and willing to pay for the subordinate institution or the subsidiary The debt provides the appropriate help to the written document. Commitment letter According to its contents and practice performance can be divided into knowledge letter, support letter, promise letter, compensation letter.There are four main views on the recognition of the letter of commitment: the letter of commitment only to produce moral obligations, does not constitute a legal guarantee; commitment letter to produce the guarantor of the legal effect,commitment letter if the clumsy wording agreed to replace the subsidiary to pay off the debt,It is actually a guarantee; commitment letter is a debt commitment,the creditor can directly sue the promisee to request repayment; commitment letter only produce inherent obligations, that is, policy support and promises.In most instances,the wording of the letter of commitment is more tactful and often obscure and difficult to determine, as compared to the warranty or warranty. In the practice of international judicial practice, there are two different ways to explain the legal effect of the letter of commitment, which is the "interpretation method" of Anglo-American law system and the "purpose explanation law" of civil law system.The French guarantee law system first stipulates that the letter of commitment is an independent form of guarantee. At present, most of the countries in the world are not in the form of the law directly to the validity of the letter of commitment to make clear the validity of the letter of commitment that the international community does not have a unified standard, the courts are often based on National law, national interests, the validity of the letter of commitment to make a different identification. In practice, countries are usually based on the contents of the letter of commitment to determine whether the commitment letter constitutes a guarantee, unilateral promise or the existence of false statements,etc., and in the case of the trial process, according to the case involved in the different facts to identify The nature of the letter of commitment, and then determine its effectiveness.China may consider the application of the "purpose of interpretation"and "interpretation of the text" in a combination of ways,drawing on France and Germany and other national legislation,the specific letter of different commitments as a unilateral promise or guarantee the contract, and then determine whether the law Effectiveness, what legal effect, the letter should bear what kind of obligations, such as only morally with the obligation to urge the borrower to pay off the money, only in the internal policy support obligations, commitment to ensure that the owner's share of equity Obligations, and even promised in the borrower can not pay off the loan,will be on behalf of the liquidation,bear joint and several liability to ensure that the obligation to achieve the obligations. Article 8 of the Law of the People's Republic of China on the Guarantee Law of the People's Republic of China: "The State organs shall not be the guarantor, except for the approval of the State Council for the use of loans from foreign governments or international economic organizations." The provisions of the paper, The content of this article is limited to the letter of commitment of the enterprise and does not discuss the nature and legal effect of the government commitment letter.