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)

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

Synonyms: Verb

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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 As a relatively young protocol, Mimblewimble doesn’t yet offer the same privacy guarantees as the methods used by Zcash and Monero, says Florian Tramer, a cryptography researcher at Stanford. Wired, "Even Privacy-Focused Cryptocurrencies Can Spill Your Secrets," 25 Nov. 2019 There’s no guarantee everyone will get a car, but an all-around good time is a definite. 4. Louise Hart, Marie Claire, "What to Get Your Work Bestie for the Holidays," 18 Nov. 2019 The Austrians had resisted, too, arguing that the readmission guarantee was nearly three decades old and no longer valid. Debbie Cenziper, Time, "The Man Who Died Pursuing Nazi Criminals More Than Four Decades After World War II Ended," 12 Nov. 2019 Perhaps the guarantee can apply to only a portion of the loan. Tom Cooney And Crystal Faulkner, Cincinnati.com, "BusinessWise: Guaranteeing a company loan can be risky business," 4 Nov. 2019 Airbnb’s host forums have hundreds of comments from hosts saying the guarantees are riddled with loopholes and the company stonewalls attempts to collect. Matthias Gafni, SFChronicle.com, "Orinda shootings: Who will pay for ‘Airbnb Mansion Party’ deaths, injuries?," 1 Nov. 2019 Governor Raimondo filed a lawsuit Tuesday to determine whether the General Assembly violated the constitutional guarantee of separation of powers by giving itself veto power over new marijuana and hemp regulations. BostonGlobe.com, "Massachusetts Governor Charlie Baker," 24 Oct. 2019 The guarantee for the 6-foot-2 guard then was elevated to $300,000 if on the opening-night roster. Ira Winderman, sun-sentinel.com, "Opening night comes with $150,000 payoff for Heat’s Kendrick Nunn," 23 Oct. 2019 With the guarantee in place, he has been removed from next summer’s free agent class. Tom Orsborn, ExpressNews.com, "Popovich takes high road with Morris, but not Knicks," 23 Oct. 2019 Recent Examples on the Web: Verb The goal is to raise $5 billion for efforts that include helping to guarantee loans, training women on financial matters and eliminating laws and regulations that make accessing credit more difficult. Washington Post, "Iconic singer hopes to close financing gap for African women," 23 Nov. 2019 When opened, the top of the razr is 172mm away, further than the Galaxy Note 10+ (162mm) and iPhone 11 Pro Max (158mm), basically guaranteeing that one-handed use is all but impossible. Michael Simon, PCWorld, "The new Motorola razr preys on your 2004 nostalgia (and 2019 FOMO) with a $1,500 folding clamshell," 14 Nov. 2019 Former Alabama star and Heisman Trophy winner Mark Ingram essentially guaranteed that the Crimson Tide would beat rival LSU in Saturday’s meeting at Bryant-Denny Stadium. Andrew Joseph, For The Win, "Mark Ingram blamed President Trump for Alabama's home loss to LSU," 10 Nov. 2019 Capital One does not provide, endorse or guarantee any third-party product, service, information or recommendation listed above. Louise Hart, Town & Country, "4 International Itineraries for a Vacation Fit for a Royal," 7 Nov. 2019 This human refinement process, however, is crucial for helping the AI system learn and therefore guaranteeing the best scientific results. Alix Lacoste, STAT, "AI will revolutionize drug discovery — but only if experts are involved," 1 Nov. 2019 Only 30 states have articulation agreements that guarantee the transfer of core community college credits and the associate degree upon enrolling at a state university. Justin Ortagus, The Conversation, "Community colleges open the door to selective universities," 23 Oct. 2019 While there’s no single shoe guaranteed to solve your heel pain, one brand that’s been consistently recommended by podiatrists to Health is Brooks. Braelyn Wood, Health.com, "Brooks Ghost 11 Running Shoes Are a Must for Anyone With Plantar Fasciitis–and They're on Sale," 22 Oct. 2019 At the time, PSE&G had recently added a weather normalization surcharge to gas bills that helped guarantee cash flow even when customers saw a mild winter and used less energy. Talia Buford, ProPublica, "The Obscure Charges That Utility Companies Add to Your Bills," 21 Oct. 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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Learn More about guarantee

Time Traveler for guarantee

Time Traveler

The first known use of guarantee was in 1680

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Statistics for guarantee

Last Updated

28 Nov 2019

Cite this Entry

“Guarantee.” The Merriam-Webster.com Dictionary, Merriam-Webster Inc., https://www.merriam-webster.com/dictionary/guarantee?pronunciation&lang=en_us&dir=g&file=guaran02. Accessed 9 December 2019.

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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
How to pronounce guarantee (audio)

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

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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