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 periodicals archive ?
Accordingly, the broad and general nature of the Shari'ah means that KSA courts can be expected to apply a combination of discretionary powers and established legal principles in the review and interpretation of contracts generally, including guarantees. Given this flexibility, KSA law generally provides parties the freedom to negotiate the terms of their dealings, unless such dealings relate to activities prohibited under the Shari'ah.
Guarantees are generally recognized under KSA law and are commonly provided by corporations and individuals for third party debts as an undertaking to make payment where the primary obligor has failed to make the payment.
These circumstances when a counter guarantee is in high demand in
THE CONCEPT AND LEGAL REGULATION OF A COUNTER GUARANTEE
-- Survey results recently released by the Institute for Safe Medication Practices (ISMP) provide insight into how pharmacy guarantees to fill prescriptions within a specified time are implemented and how pharmacists link these time guarantees to medication errors.
This revolutionary guarantee service enables all that are buying art for investment or that are looking to protect their collection value and/ or inventory against fluctuation and uncertainty, to obtain at least their original acquisition price, effectively guaranteeing the value of their art pieces.
* Guarantees death benefits at the exact time they are needed.
Sometimes, for example because of restructuring in the tenant's group of companies, or as a means of giving the landlord sufficient security to consent to a transfer of the lease, the landlord is offered the comfort of a further guarantee from the parent company.
Less than seven per cent of the 1.3 billion cheques written during 2009 were guaranteed, and by the end of 2010 less than three-quarters of debit cards also acted as guarantee cards.
"There was no waiver granted on the guarantee levy for the second guarantee agreement, hence SWC is obliged to pay guarantee levy for 2% of the total outstanding loan value annually.
Unconditional and Specific Results: Service guarantees are typically either unconditional full satisfaction guarantee or a specific result/attribute based guarantee (Wirtz and Kum 2001; Hart 1993).
About 1.8 million participants currently have access to in-plan guarantees in their DC plans, reports LIMRA.