Kleinwort Benson Ltd v Malaysian Mining Corpn Bhd (1989) 1 All ER 785, (1989) 1 WLR 379, CA
The plaintiffs loaned millions of pounds to a subsidiary of the defendant but the parent company were only prepared to give a letter of comfort saying - this stated "it is our policy to ensure that the business of thesubsidiary is at all times in a position to meet its liabilities to you".
When the subsidiary became insolvent the parent company changed its policy and reneged on the moral promise of the letter which the Court of Appeal held had no contractual effect.
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