guarantee

noun
guar·​an·​tee | \ˌger-ən-ˈtē, 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

affirm, assert, aver, avouch, avow, declare, lay down, profess

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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

In a statement to TechCrunch, a spokesperson from Facebook confirmed that there was no guarantee the feature would see a wide release. Jon Porter, The Verge, "Instagram is testing the ability to share your precise location history with Facebook," 5 Oct. 2018 But even after Princess Anne's death, there is no guarantee that the title change will happen automatically. Eileen Reslen, Town & Country, "Why Princess Charlotte Won't Automatically Inherit the Title of Princess Royal," 12 Aug. 2018 Citing the complexities of bankruptcy law, experts said there was no guarantee a judge would approve Indiana's claim. Brian Slodysko, Houston Chronicle, "Pence family gas stations left costly environmental legacy," 13 July 2018 Being active in the marketplace is no guarantee for making signings and transfer deals, though. Patrick Brennan, Cincinnati.com, "Why FC Cincinnati will target South, Central America for building MLS roster," 10 July 2018 Central both to the idea of the rule of law and to our own Constitution’s guarantee of equal protection is the principle that government and each of its parts remain open on impartial terms to all who seek its assistance. Nancy L. Combs, Vox, "An optimist and yet a realist: a former clerk to Justice Kennedy considers his legacy," 30 June 2018 Also, there is no guarantee that kids who can't be reunified with relatives will be allowed to stay in the U.S., Butera said. Kaila White, azcentral, "Could immigrant children separated from their relatives face adoption?," 29 June 2018 But the announcement of this deal is the first step on a long and crooked path, and there is no guarantee that Amazon (AMZN), for all its size and success, will quickly become a major player in the nation’s $370 billion drug business. Casey Ross, STAT, "Amazon’s acquisition of PillPack is a first step, but not a fatal blow for the pharmacy industry," 28 June 2018 The contract states that ESPN will pay the schools their guarantees within 30 days after the game. Jake Lourim, The Courier-Journal, "Alabama will get $1.75 million more than Louisville for football game," 20 June 2018

Recent Examples on the Web: Verb

The children of temporary visitors to this country (particularly those not lawfully present) simply do not qualify for the automatic citizenship guaranteed by the 14th Amendment. WSJ, "Parsing Jurisdiction in the 14th Amendment," 9 Nov. 2018 This contractual commitment to patching devices goes much further and guarantees in many cases that devices will remain up to date. Jacob Kastrenakes, The Verge, "Google mandates two years of security updates for popular phones in new Android contract," 24 Oct. 2018 There’s nothing wrong with putting Kylie Jenner — or any reality TV star guaranteed to generate buzz — on the cover of a magazine. Baze Mpinja, Allure, "Why Self-Made Boss Pat McGrath Is an Invaluable Asset to the Beauty World," 23 July 2018 Pueblo may be headed on such a collision course, and success is by no means guaranteed: ultimately, the same city council that set the idealistic goals may choose to bail on them. Justin Worland/pueblo, Time, "How One Industrial City Is Fighting to Go Green," 12 July 2018 The firm also missed a $2-million payment, personally guaranteed by Avenatti, to Jason Frank, a lawyer who used to work there. Michael Finnegan, latimes.com, "Bankruptcy judge hits Michael Avenatti's firm with restraining order to freeze legal fees in 54 cases," 12 July 2018 This year's free agent class has done relatively well in terms of annual salary, but only 13 players have signed deals guaranteed for $25 million or more in total. Rob Mahoney, SI.com, "NBA Free Agency: The Thought Behind the One-Year Deal Trend," 12 July 2018 Risk-averse people who have the means to sock away some cash are now able to earn a decent — if not exactly generous — guaranteed return from bank savings, money market, and CD accounts. Katheleen Conti, BostonGlobe.com, "Banks are offering higher interest rates for savings accounts. But you still need to be smart," 11 July 2018 Human rights groups say the true number could be as high as 3 million — in a nation of nearly 70 million — even though the Thai government has refused to ratify the United Nations convention guaranteeing rights for refugees. Hannah Beech, New York Times, "Stateless and Poor, Some Boys in Thai Cave Had Already Beaten Long Odds," 10 July 2018

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

probably alteration of guaranty entry 1

Verb

see guarantee entry 1

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Statistics for guarantee

Last Updated

14 Nov 2018

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

verb

English Language Learners Definition of guarantee

: 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, 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- \

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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