guarantee

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

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 Even if the Suns run the table and go a perfect 8-0 in their final regular season slate, there's no guarantee that would be enough. Jeremy Cluff, The Arizona Republic, "NBA power rankings: Assessing Phoenix Suns' shot in Disney World bubble," 3 July 2020 This feat—opening one region while suppressing the pandemic in another—has never been done before, and there is no guarantee that it can be done. Robinson Meyer, The Atlantic, "The Week America Lost Control of the Pandemic," 3 July 2020 There is no guarantee, of course, that a spring season would be safer. Tim Sullivan, The Courier-Journal, "College football should consider punting its season until the spring," 2 July 2020 But there's no guarantee that the stock market won't drop further in future years or rates won't stay low for some time. Susan Tompor, Detroit Free Press, "College students to get a break as loan rates drop to historic lows," 1 July 2020 There was no guarantee Schobert and Kirksey would’ve returned to top form in 2020. Scott Patsko, cleveland, "Which offseason departure will the Browns miss most? Cleveland Browns 20 questions for ’20," 1 July 2020 There is no guarantee that any will prove effective. Tim Darnell, ajc, "US could see 100K new coronavirus cases per day, Fauci says," 30 June 2020 But a modest income is no guarantee, of course, that an out-of-state telecommuter will escape an audit by New York tax authorities. Jeff John Roberts, Fortune, "Coronavirus telecommuters could face a tax nightmare," 27 June 2020 And while scientists remain optimistic about the eventual development of a vaccine, there's no guarantee that one will be found. Cnn's Nada Altaher And Shawn Deng, CNN, "UAE and China launch Phase 3 clinical trial in humans for Covid-19 vaccine," 24 June 2020 Recent Examples on the Web: Verb To get a deal done, MLB will probably have to inch up the number of games, while the union will probably have to guarantee not to air any of its grievances. Dallas News, "Was that so hard? In latest twist, baseball may be saved and MLB could have a frantically fun season ahead," 17 June 2020 For just a fraction of the $1 billion McDonald’s is giving to its shareholders this week, the company could guarantee paid sick leave for workers who begin exhibiting COVID-like symptoms. Yamile Osoy, Time, "McDonald's Workers Like Me Are Fighting for Our Health and Safety. Meanwhile, the Company Is Paying Shareholders Nearly $1 Billion," 17 June 2020 The mere fact that the Vienna meeting is taking place does not guarantee a deal will be struck. Ned Temko, The Christian Science Monitor, "Resetting the Russia relationship: A China play, too?," 15 June 2020 Within a group of killers, only acts of sadistic cruelty in which all are made to join can guarantee solidarity. Adam Gopnik, The New Yorker, "Revisiting Mengele’s Malignant “Race Science”," 15 June 2020 At the core of work to change the bail system, including community funds, is the belief that arrests and incarceration do not meaningfully reflect guilt—and that caging people doesn’t guarantee public safety. Hannah Giorgis, The Atlantic, "Why It Matters That So Many People Are Donating to Bail Funds," 6 June 2020 For nearly three months, the country founded to guarantee religious freedom has seen its houses of worship shut down. Abigail Shrier, WSJ, "Politicians Shutter Churches and Synagogues, Then Tolerate Riots," 5 June 2020 Viewers must disable any browser ad blockers and not skip the ads in the video to guarantee that the creator receives any compensation. Saba Hamedy, CNN, "Some YouTubers say they plan to donate their ad revenue from videos to Black Lives Matter movement," 4 June 2020 Few had the devices to provide students who didn’t have computers of their own, and even fewer had the number of WiFi hotspots needed to guarantee every student was connected to the Internet. Aliyya Swaby, ExpressNews.com, "A small Texas school district reopens classrooms for summer school," 2 June 2020

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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Time Traveler for guarantee

Time Traveler

The first known use of guarantee was in 1680

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Statistics for guarantee

Last Updated

6 Jul 2020

Cite this Entry

“Guarantee.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/guarantee. Accessed 6 Jul. 2020.

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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) How to pronounce guarantee (audio) 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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