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

With the undefeated, 9-0, Kansas City Chiefs coming to Paul Brown Stadium, Chad Johnson issued a guarantee his upstart Bengals would pull the upset. Paul Dehner Jr., Cincinnati.com, "The No. 3 Cincinnati Bengals play of the last 30 years: Peter Warrick's return upends KC," 5 July 2018 Before Trump took office, having a private bill under consideration by Congress was often a guarantee to a stay of removal. Lisa Maria Garza, OrlandoSentinel.com, "U.S. Rep. Darren Soto's longshot tactic aims to stall deportation of undocumented wife of Polk County Marine veteran," 28 June 2018 Kim is seeking a security guarantee — possibly including a peace treaty formally ending the Korean War — and the removal of the U.S.’s nuclear umbrella protecting allies South Korea and Japan. Fortune, "President Trump Shakes Hands With Kim Jong Un to Kick Off Historic Summit," 12 June 2018 The new guarantees will be in place for students starting community college in fall 2019. Lauren Hernandez, SFChronicle.com, "UC admits record number of transfer students for fall," 12 July 2018 Written guarantees are meaningless without a culture to sustain them. Joseph Tartakovsky, WSJ, "The Culture That Sustains America’s Constitution," 2 July 2018 Whatever else changes in American life, that proposition does not change; and holding it close is the best guarantee that democracy will endure. Time Staff, Time, "The 25 Moments From American History That Matter Right Now," 28 June 2018 President Trump committed to provide security guarantees to the DPRK, and Chairman Kim Jong Un reaffirmed his firm and unwavering commitment to complete denuclearization of the Korean peninsula. NBC News, "Full text of the U.S.-North Korea agreement signed by Trump, Kim," 12 June 2018 One option May’s officials favor as a backstop guarantee is to keep the entire U.K. inside those rules of the customs union and single market that make an open border with Ireland possible. Bloomberg.com, "U.K. Says Irish Brexit Border Answer May Not Come Until 2021," 25 Apr. 2018

Recent Examples on the Web: Verb

What did the school have to say for itself after such a glaring error that actually had several huge repercussions (keeping in mind that all Texas public high school’s top students were guaranteed one-year free tuition)? Breanna Edwards, The Root, "High School Valedictorian Stripped of Ranking Due to an Administrative Error, but She Thinks It's Retaliation for Critical Graduation Speech," 2 July 2018 The safety bicycle had been invented only a couple decades prior, and unless any 102-year-olds were going to throw down at L’Eroica, this bike was was pretty much guaranteed to predate every other bike at the ride. Outside Online, "Riding 100 Miles* on a 102-Year-Old Bike," 12 June 2018 Nurturing plants takes time and patience and the outcome is never guaranteed. Kitty Leshay, Courant Community, "Art And Garden Tour Beckons Lovers Of Beauty," 6 June 2018 The lefty pitcher is guaranteed to miss class in the spring when university’s team travels across the country to compete. Suzanne Baker, Naperville Sun, "Naperville North grad never missed a day of class in 12 years of school," 1 June 2018 Each team is guaranteed at least five games, with the teams being seeded in a tournament-style bracket based upon their first three games. Dave Southorn, idahostatesman, "Here's how to watch two former Boise State basketball players in NBA Summer League," 5 July 2018 This soft, rainbow highlighter creates a silvery sheen with micro-pigments that is guaranteed to dazzle. Aliza Kelly Faragher, Allure, "What July's Pisces Horoscope Means for You," 29 June 2018 In her debut cookbook, Feast by Firelight ($17, amazon.com), Frisch offers up simple recipes that are guaranteed to hit the spot after a long day on the trail (or a night under the stars). Blake Bakkila, Health.com, "3 Easy Summer Campfire Recipes Your Entire Family Will Enjoy," 22 June 2018 But many of the young immigrants, known as Dreamers, would face an uncertain road to permanent residency -- a major sticking point for Democrats who want to guarantee them a path to becoming Americans. Anna Edgerton, Bloomberg.com, "Trump Says He Won't Sign House Immigration Compromise Measure," 15 June 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

Noun

probably alteration of guaranty

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Learn More about guarantee

Phrases Related to guarantee

money-back guarantee

Statistics for guarantee

Last Updated

19 Sep 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

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Comments on guarantee

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