guaranty

Definitions (2)
Related Terms
1. General: Written undertaking that something is of a specified benefit, content, or quality, or that it will provide satisfaction or will perform a duty or obligation in a specified manner.
2. Legal: Three-party contingent liability agreement under which a third-party (the guarantor) agrees to be directly or collaterally responsible for the obligation (contract fulfillment, loan) of a first-party (the principal) to a second-party (bank, client) in case the first-party defaults or fails to fulfill its part of a deal. In effect, signing a guaranty as a guarantor is like signing a blank check.
Unlike a warranty, a guaranty may refer to things as well as persons and, to be legally enforceable, must be in writing. Also called bond.

Use 'guaranty' in a Sentence

They had a money back guaranty on the item, which made me feel safe, because I knew I had a record of breaking things.
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The guaranty on the contract ensured all parties would be made whole and happy by the end of the project.
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Because he has such a fine reputation built over his many years of service it is a show and guaranty of his craftsmanship abilities,.
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