guarantee

noun
guar·​an·​tee | \ ˌger-ən-ˈtē How to pronounce guarantee (audio) , ˌgär-, ˌga-rən- also ˈger-ən-ˌtē or ˈgär-ən-, ˈga-rən-\

Definition of guarantee

 (Entry 1 of 2)

1 : guarantor
3 : an assurance for the fulfillment of a condition: such as
a : an agreement by which one person undertakes to secure another in the possession or enjoyment of something
b : an assurance of the quality of or of the length of use to be expected from a product offered for sale often with a promise of reimbursement The washer comes with a guarantee against major defects.

guarantee

verb
guaranteed; guaranteeing

Definition of guarantee (Entry 2 of 2)

transitive verb

1 : to undertake to answer for the debt, default, or miscarriage of guarantee a loan
2 : to engage for the existence, permanence, or nature of : undertake to do or secure guarantee the winning of three tricks
3 : to give security to guaranteed her against loss
4 : to assert confidently I guarantee you'll like it

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Synonyms for guarantee

Synonyms: Noun

bond, contract, covenant, deal, guaranty, surety, warranty

Synonyms: Verb

guaranty, warrant

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Examples of guarantee in a Sentence

Noun

And as key pieces of the infrastructure are knocked out, there is no guarantee that they will be repaired or rebuilt, at least not as they were before. — Naomi Klein, Harper's, October 2007 It might be no bad thing if the Constitution's guarantee of "equal protection of the laws" was interpreted to outlaw the vagaries of voting … — Michael Kinsley, New York Times Book Review, 5 Nov. 2006 Collecting can be a sort of love-sickness. If you begin collecting living things,  … even if you manage to find them and then possess them, there is no guarantee they won't die or change. — Susan Orlean, New Yorker, 23 Jan. 1995 The washer comes with a guarantee against major defects. They wanted a guarantee that the document was authentic. They want the new contract to include a guarantee of job security. The U.S. Constitution includes guarantees against unreasonable searches. He cited the First Amendment guarantee of free speech.

Verb

They're called change agents. They swoop in to transform stodgy institutions …  . It's a risky tack, one that guarantees large numbers of people will hate the boss's guts. — Daniel McGinn, Newsweek, 28 Feb. 2005 For an incumbent President …  . The power of the office and the media coverage its holder is guaranteed for just doing his job generally give him the luxury of staying above the fray. — Joe Klein, Time, 22 Mar. 2004 Voucher plans were adopted largely as a last resort, an effort to guarantee a semblance of school choice for low-income minority students in failing inner-city schools. — Jeffrey Rosen, New Republic, 18 Mar. 2002 The washer is guaranteed against defects for one year. They guarantee that the diamonds they sell are top quality. He offered to personally guarantee the loan. The investment was guaranteed by the bank. I guarantee that you'll be satisfied. He guaranteed us that everything would go according to plan. Money doesn't guarantee a happy life. He guaranteed a victory in the championship game.
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Recent Examples on the Web: Noun

That’s a pretty big guarantee to make – and break – for an area pivotal to the administration’s re-election. Seth A. Richardson, cleveland.com, "Trump plays the Ohio hits during Cincinnati rally: The Flyover," 2 Aug. 2019 Is the job guarantee in the Green New Deal realistic? NBC News, "Democratic debate transcript: July 31, 2019," 1 Aug. 2019 For my first order, the guarantee was $6.85 and the customer, a woman in Boerum Hill who answered the door in a colorful bathrobe, tipped $3 via the app. Alison Griswold, Quartz, "DoorDash says it will change tipping policy after widespread outrage," 24 July 2019 Nor is there any guarantee that migrants will stop attempting the journey. Washington Post, "Mexico, under pressure from Trump, says migrant flow has dropped 36%," 23 July 2019 For my first order, the guarantee was $6.85 and the customer, a woman in Boerum Hill who answered the door in a colorful bathrobe, tipped $3 via the app. Andy Newman, New York Times, "My Frantic Life as a Cab-Dodging, Tip-Chasing Food App Deliveryman," 21 July 2019 But there’s no real guarantee the Libra Reserve would be stable in practice, especially when broader conditions get rough. David Z. Morris, Fortune, "Facebook’s Libra Currency Could Threaten the Global Financial System. Here’s How," 18 July 2019 His $65 million guarantee was the most ever paid to a non-quarterback. Nate Davis, USA TODAY, "NFL franchise tag deadline: What you need to know heading into Monday," 12 July 2019 The guarantee that the skies will stay dark just isn’t there. Meredith Carey, Condé Nast Traveler, "The Rise of Astrotourism Could Potentially Be Its Downfall," 3 July 2019

Recent Examples on the Web: Verb

Patriots Wire's Henry McKenna breaks down why Tom Brady's contract extension isn't guaranteed. Chris Bumbaca, USA TODAY, "Tom Brady, Gisele Bundchen put Brookline, Mass., home up for sale at $39.5 million," 6 Aug. 2019 This would be Williams’s fourth season on his five-year, $66 million deal, though his base salary isn’t guaranteed next season. Sam Fortier, baltimoresun.com, "Jay Gruden ‘seriously’ doubts Redskins will trade Trent Williams," 3 Aug. 2019 Prosecutors accused her of downplaying the risks of investing and falsely promising the loans were guaranteed by her company’s inventory and assets. Lynh Bui, Washington Post, "Chevy Chase financial adviser — who conjured curses against investigators — gets 20 years for Ponzi scheme," 31 July 2019 All teams will be guaranteed eight matches, and those winning their respective brackets will have played nine matches. Ted Dunnam, Houston Chronicle, "Volleyball: Pearland gearing up for 58-team Adidas John Turner Classic," 31 July 2019 That may indicate a possible downturn in the aerospace cycle, though with record backlogs Airbus is already guaranteed several years of work. Benjamin Katz, Fortune, "Airbus Profit Soars As It Delivers Planes that Rival Boeing 737 Max," 31 July 2019 In some cases a big tip will contribute to a payment that's already guaranteed to workers. Matt Mcfarland, CNN, "Tipping your food delivery person may actually be helping a big company," 29 July 2019 But United Way’s Mendez said funding was not guaranteed. Ginger Christ, cleveland.com, "United Way funding changes hitting area health care services," 28 July 2019 The mayor also promised to support legislation to end license suspensions over parking ticket debt statewide; if passed, which with Lightfoot’s support is almost guaranteed, some 55,000 Illinoisans could regain their driving privileges. Melissa Sanchez, ProPublica, "She’s Risked Arrest by Driving With a Suspended License for Seven Years. This Week She Got Some Big News.," 26 July 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'guarantee.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of guarantee

Noun

1680, in the meaning defined at sense 1

Verb

1731, in the meaning defined at sense 1

History and Etymology for guarantee

Noun and Verb

probably alteration of guaranty entry 1

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Statistics for guarantee

Last Updated

8 Aug 2019

Look-up Popularity

Time Traveler for guarantee

The first known use of guarantee was in 1680

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More Definitions for guarantee

guarantee

noun

Financial Definition of guarantee

What It Is

In general, a guarantee is a promise to take responsibility for another company's financial obligation if that company cannot meet its obligation. The entity assuming this responsibility is called the guarantor.

How It Works

Let's assume XYZ Company has a subsidiary named ABC Company. ABC Company would like to build a new plant and thus needs to borrow $10 million from a bank. The bank will probably require XYZ Company to guarantee the loan. By doing so, XYZ Company agrees to repay the loan using cash flows from other parts of its business should ABC Company be unable to generate enough cash on its own to repay the debt.

Often a parent company will guarantee bonds issued by one of its subsidiaries, but there are plenty of other situations that might involve guarantees. For example, vendors sometimes require a guarantee from a customer if the vendor is uncertain about the customer's ability to pay (this most often happens in transactions involving expensive equipment or other physical property). In these situations, the customer's bank might guarantee the customer's payment, meaning that the bank will pay the vendor if the customer does not.

Guarantors don't always guarantee the entire amount of a liability. In bond issues, for example, the guarantor might only guarantee the repayment of interest or principal, but not both. Sometimes more than one company might guarantee a security; in these cases, each guarantor is usually only responsible for a pro rata portion of the issue. In other cases, each guarantor may be responsible for other guarantors' portions if they also default on their responsibilities.

Historically, guarantors disclosed the nature and size of their guarantees in the notes to their financial statements. But in 2002 the Financial Accounting Standards Board (FASB) issued Interpretation 45, stating that guarantors must book the fair value of the guaranteed obligation as a liability on the balance sheet and that they must do so at the inception of the guarantee. Some guarantees, such as those that are accounted for as derivatives, those issued by insurance companies, and some guarantees issued by leasing companies, are exempt from this rule. It is important to note that guarantees issued between parents and their subsidiaries do not have to be booked as liabilities.

However, all guarantees must be disclosed. The guarantor must disclose the nature of the guarantee (terms, history, and events that would put the guarantor in a position to fulfill its obligation), the maximum potential liability under the guarantee, and any provisions that might enable the guarantor to recover any money paid out under the guarantee.

Why It Matters

Guarantees mitigate risk, but it is important to note that they do not make a security risk-free. After all, it is still possible that even the guarantor can default on the liability if the liability is too large or if the guarantor is already struggling for other reasons. Regardless, guarantees provide an extra layer of security, which is why guaranteed securities often get higher credit ratings.

Source: Investing Answers

guarantee

noun

English Language Learners Definition of guarantee

 (Entry 1 of 2)

: a promise that the quality of something (such as a product that is being sold) will be as good as expected
: a promise that something is true or real
: a promise that something will happen or be done

guarantee

verb

English Language Learners Definition of guarantee (Entry 2 of 2)

: to make a usually written promise that whatever you are selling, doing, etc., is what you say it is
: to promise to pay for (something) if another person fails to pay for it
: to say (something) with great confidence

guarantee

noun
guar·​an·​tee | \ ˌger-ən-ˈtē How to pronounce guarantee (audio) , ˌgär-\

Kids Definition of guarantee

 (Entry 1 of 2)

1 : a promise that something will be or will happen as stated a guarantee against defects
2 : something given as a promise of payment : security

guarantee

verb
guaranteed; guaranteeing

Kids Definition of guarantee (Entry 2 of 2)

1 : to make a promise about the condition or occurrence of something guarantee a car
2 : to promise to be responsible for the debt or duty of another person I'll guarantee his loan.

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guarantee

noun
guar·​an·​tee | \ ˌgar-ən-ˈtē, ˌgär- How to pronounce guarantee (audio) \

Legal Definition of guarantee

1 : guarantor
3 : an assurance that a condition will be fulfilled: as
a : an agreement by which one person undertakes to secure another in the possession or enjoyment of something
b : an assurance of the quality or of the length of use to be expected from a product offered for sale often with a promise of reimbursement
4 : guaranty sense 4, 5 constitutional guarantees

Other Words from guarantee

guarantee transitive verb

History and Etymology for guarantee

probably alteration of guaranty

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Comments on guarantee

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