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

The lifting of some restrictions on the passage of people and cargo in and out of Gaza further indicated a strengthening of the cease-fire, which Hamas officials say would see Israel easing its blockade in exchange for guarantees of quiet. Isabel Debre, The Seattle Times, "Israel, Hamas take first steps toward Gaza cease-fire deal," 31 Mar. 2019 President Trump and his trade generals want to make sure China doesn’t use the yuan to gain a competitive advantage again, and are asking for guarantees on currency stability as a part of any trade deal with Beijing. Nathaniel Taplin, WSJ, "Trump Wants a Strong Yuan—He May Get It Regardless," 18 Mar. 2019 One of the biggest risers over the course of the predraft process, Huerter is known to have secured at least one guarantee from teams further down in the first round and has shut down workouts. Jeremy Woo, SI.com, "2018 NBA Mock Draft 9.0: Trade Speculation Heats Up," 10 June 2018 Some of those traits and abilities -- and making mid and long-range shots -- could determine whether Washington gets a first-round guarantee from an NBA team. Fletcher Page, The Courier-Journal, "Kentucky basketball's PJ Washington undecided on NBA draft," 8 May 2018 Even with all that prep work, there are no guarantees for the mole. David Grossman, Popular Mechanics, "To Understand How the Earth Formed, and How It Might Disappear, NASA Is Drilling on Mars," 21 Feb. 2019 The growth of super PACs and lobbyists in Washington guarantees that any piece of appropriate regulation will be watered down — first in Congress and then in the implementation stage. New York Times, "America Has Gone Off the Rails. Steven Brill Sees Ways to Get It Back on Track.," 2 July 2018 The city has built in guarantees so that if the new development doesn't yield all the new taxes expected, Cobalt Partners would have to make up the shortfall, Stibal said. Jane Ford-stewart, Milwaukee Journal Sentinel, "Pared-down 70th Street corridor plan in West Allis expected to take major step," 25 June 2018 The details: $27 million over those four years, with $13 million in guarantees. Adam H. Beasley, miamiherald, "The Miami Dolphins sign Bobby McCain to richest contract for a slot corner in the NFL," 1 June 2018

Recent Examples on the Web: Verb

The Consumer Financial Protection Bureau this week started requiring issuers of prepaid cards to guarantee basic protection from fraud, unauthorized charges and errors. Yuka Hayashi, WSJ, "Prepaid-Card Users Get Protection Guarantee," 5 Apr. 2019 Cloud VR isn’t guaranteed Though there was a palpable sense of optimism in AT&T’s 5G demo room, combining the struggling VR market with the emerging 5G technology is no certainty. Mark Hachman, PCWorld, "5G could be the foundation of next-gen 'cloud VR'," 27 Mar. 2019 Place your to-go order ahead of time to guarantee smooth sailing on the big day. Sarah Schreiber, Good Housekeeping, "20 Restaurants That Will Stay Open on Easter Sunday," 12 Mar. 2019 The management takes its responsibility to guarantee the safety of air traffic. Sam Blum, Popular Mechanics, "Belgium Cancels All Flights For 24 Hours as Air Traffic Controllers Strike," 13 Feb. 2019 Treaties between Indigenous nations and the U.S. government are supposed to guarantee that Native communities receive certain services in exchange for their territory, but many of these funds have been halted in the face of the shutdown. Isabella Gomez, Teen Vogue, "5 Ways the Government Shutdown Is Impacting Americans," 3 Jan. 2019 The Nova rocket program would rely on scaling up existing technology, which meant the possibility of fewer surprises but guaranteed extended timelines and the need for a massive budget to construct the monstrous rocket. Alex Hollings, Popular Mechanics, "The Saturn V Story: From Nazi Roots to America's Moon Rocket," 6 Feb. 2019 Target is enabling late-stage shopping habits with free two-day shipping for select items guaranteed to arrive by December 24. Leah Prinzivalli, SELF, "7 Last-Minute Fitness Gifts You Can Order From Target to Still Arrive by Christmas," 20 Dec. 2018 This fiery red dress with a thigh-high slit (not to mention that off-the-shoulder detailing!) just screams glamour and is basically guaranteed to turn heads. Alanna Greco, Seventeen, "Exactly What to Wear to Prom, According to Your Sign," 11 Mar. 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

18 Apr 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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