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An opinion letter is similar to an information letter in that it provides information concerning the law. It is different in that it often includes, in addition, an analysis of that information and provides a legal opinion or legal advice. The purpose is to inform the reader how the law applies to the facts.
An opinion letter has a tone of inquiry and has the prediction of an attorney on how the court will resolve a dispute. A demand letter is intended to be persuasive and seeks resolution or a settlement to a dispute. A demand letter is sent for the settlement of a potential lawsuit.
Although there are a variety of opinion letters, the most common include the Remedies Opinion (or the Enforceability Opinion), the Non-Consolidation Opinion, and the Entity Status Opinion.
An opinion from company counsel is intended to give the investors additional comfort as to the legal matters covered by the opinion, but they are not a substitute for ?due diligence? to be performed by the investors and their counsel.
A third party legal opinion, commonly referred to as an ?Opinion Letter?, is a letter issued by an attorney to advise a client of legal risks and resolve legal uncertainties. An Opinion Letter assures the recipient that their conduct is legal and confirms within the existence of legal relationships.