guarantee


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Related to guarantee: Guarantee letter

Guarantee

One to whom a guaranty is made. This word is also used, as a noun, to denote the contract of guaranty or the obligation of a guarantor, and, as a verb, to denote the action of assuming the responsibilities of a guarantor.

guarantee

1) v. to pledge or agree to be responsible for another's debt or contractual performance if that other person does not pay or perform. Usually, the party receiving the guarantee will first try to collect or obtain performance from the debtor before trying to collect from the one making the guarantee (guarantor). 2) the promise to pay another's debt or fulfill contract obligations if that party fails to pay or perform. 3) n. occasionally, the person to whom the guarantee is made. 4) a promise to make a product good if it has some defect. (See: guarantor)

guarantee

verb answer for, assume responsibility, assure, back, be responsible for, become liable, become surety for, certify, commit oneself, ensure, fides, give assurrnce, give one's word, guard, hypothecate, impignorate, insure, make oneself answerable for, obligate, pledge, promise, safeguard, secure, sponsor, stake, support, underwrite, vadimonium, vouch for, warrant
Associated concepts: guarantee a title, guarantee against breakage, guarantee payment
See also: accommodation, adduce, agree, assure, attest, backing, bear, bond, certificate, certify, charge, close, confirm, consent, contract, corroborate, cosign, covenant, coverage, deposit, ensure, hostage, hypothecation, indemnify, indorse, insurance, insurer, lien, oath, pact, pawn, pledge, precaution, promise, protection, reassure, recommend, security, sponsor, stipulate, subscribe, swear, undertake, undertaking, underwrite, verify, vouch, vow, warranty

guarantee

a collateral promise to answer for the debt or obligation of another. A guarantee is a secondary obligation, becoming operative only where the principal debtor is in default; because it is a secondary obligation, should the primary obligation be unlawful or invalid or unenforceable, the guarantor or surety cannot be compelled to make payment under the guarantee. A guarantee should be distinguished from an indemnity, which is a primary obligation to compensate the loss of another; in the latter case the unenforceability of the principal debt will not render the indemnity unenforceable. In Scotland, the same relationship is regulated by the institution of caution (pronounced ‘cayshun’). Proper caution is the term used where the cautioner is expressly bound as guarantor to the creditor. The term improper caution is used when the cautioner is bound as a co-obligant with the principal debtor jointly and severally to the creditor.

The term is used colloquially in the UK for a statement by a manufacturer of goods that it will undertake some responsibility such as repair or replacement.

GUARANTEE, contracts. He lo whom a guaranty is made.
     2. The guarantee is entitled to receive payment, in the first place, from the debtor, and, secondly, from the guarantor. He must be careful not to give time beyond that stipulated in the original agreement, to the debtor, without the consent of the guarantor; the guarantee should, at the instance of the guarantor, bring an action against the principal for the recovery of the debt. 2 Johns. Oh. R. 554; 17 Johns. R. 384; 8 Serg. & Rawle, 116; 10 Serg. & Rawle, 33; 2 Bro. C. C. 579, 582; 2 Ves. jr. 542. But the mere omission of the guarantee to sue the principal debtor will not, in general, discharge the guarantor. 8 Serg. & Rawle, 112; 3 Yeates, R. 157; 6 Binn. R. 292, 300.

References in classic literature ?
He had said that he intended to stop at no means to obtain his freedom; even if Nastasia were to promise to leave him entirely alone in future, he would not (he said) believe and trust her; words were not enough for him; he must have solid guarantees of some sort.
When it became known in the town that we were discussing the plans for a new, large building, a Southern white man who was operating a sawmill not far from Tuskegee came to me and said that he would gladly put all the lumber necessary to erect the building on the grounds, with no other guarantee for payment than my word that it would be paid for when we secured some money.
I suppose it was that in courtship everything is regarded as provisional and preliminary, and the smallest sample of virtue or accomplishment is taken to guarantee delightful stores which the broad leisure of marriage will reveal.
Dobson's own original work are a sufficient guarantee of the taste and discrimination we may look for in a collection like this, in which the random lightnings of the first of the essayists are grouped under certain heads--"Character Sketches," "Tales and Incidents," "Manners and Fashions," and the like--so as to diminish, for the general reader, the scattered effect of short essays on a hundred various subjects, and give a connected, book-like character to the specimens.
But when I exhibited the prisoners we already had taken, and showed them that they were alive and unharmed, a great Sagoth in one of the boats asked me what guarantee I could give that I would keep my word.
The object of his visit was to obtain from her her personal cheque for a large sum in return for a guarantee of her personal safety and return to England.
And if you fail me," Gahan admonished him, "I can promise you as sure a death as even your king might guarantee you.
He spoke of everybody whom he had met and every place which he had visited without reserve, and yet I guarantee that there is no person in England today, however much he may have talked with him, who knows in the least what his true impressions are.
Von Lowitz was on the track of something of this sort last year, but he gave it up chiefly because Krupps wouldn't guarantee him a shell.
And as I watched him I felt in my own being, in my very muscles themselves, the surge and thrill of desire to go leaping from bough to bough; and I felt also the guarantee of the latent power in that being and in those muscles of mine.
What do you guarantee to tell us if we venture the ten pounds?
But however, if you have not hitherto considered of this matter, I promise you it is now high time, for my brother is resolved immediately to conclude the treaty with Mr Blifil; and indeed I am a sort of guarantee in the affair, and have promised your concurrence.