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 club fined Brown $215,073.53 for conduct detrimental to the team, ESPN reported Saturday morning, a move that voided $29,125 million worth of guarantee money in his contract. Jerry Mcdonald, The Mercury News, "Raiders fine Antonio Brown, void guarantees; he wants his release: report," 7 Sep. 2019 The club fined Brown $215,073.53 for conduct detrimental to the team, ESPN reported Saturday, a move that voided $29,125 million worth of guarantee money in his contract. Michael Nowels, The Denver Post, "Raiders release WR Antonio Brown after wild preseason," 7 Sep. 2019 But going after money moved offshore would be time-consuming and expensive, with few guarantees, Moon and others said. CBS News, "How Purdue Pharma's Sackler family hid their cash," 30 Aug. 2019 Some who did respond quickly ghosted, even with the guarantee of anonymity. Jason Parham, WIRED, "When Influencers Switch Platforms—and Bare It All," 19 Aug. 2019 Sometimes the same pundits who defend players taking early contracts are the ones who bemoan the lack of guarantees in NFL player contracts, especially compared to other sports. Andrew Brandt, SI.com, "Ezekiel Elliott and Melvin Gordon Will Likely Get Their Contract Upgrade—With a Caveat," 6 Aug. 2019 All of these guarantees come at a cost, which can make variable annuities expensive to own. Liz Weston, Dallas News, "Three big mistakes variable annuity owners make," 6 Aug. 2019 Yet our findings in our immigration enforcement study suggest that some U.S. citizens may be more vulnerable than others to violations of this basic legal guarantee. Emily Ryo, The Conversation, "How ICE enforcement has changed under the Trump administration," 29 July 2019 But that’s no guarantee of privacy. Dementia or lack of familiarity with technology may mean roommates cannot adjust cameras to protect their privacy. The Conversation, oregonlive.com, "Is keeping a web cam on relative in elder care a protection or an invasion of privacy?," 27 July 2019

Recent Examples on the Web: Verb

There’s no way around it — the Tigers are all but guaranteed to win this game against an FCS school that most of America has not heard of. Zachary Neel, USA TODAY Sportsbook Wire, "Northwestern State Demons at LSU Tigers odds, picks and best bets," 14 Sep. 2019 YouTube’s recommendation algorithm is powerful, and Eliana has grown so fast mainly because her videos are a confluence of everything YouTube viewers seem to be loving right now, which almost guarantees her a certain level of distribution. Taylor Lorenz, Outside Online, "Jennelle Eliana's Rise to Vanlife Stardom," 7 Sep. 2019 Using a crane, engineers carefully maneuvered the JWST into place, guaranteeing that the telescope's primary points of contact were aligned with 100 percent accuracy with the sunshield. David Grossman, Popular Mechanics, "In a Major Milestone, the James Webb Space Telescope Is Whole at Last," 29 Aug. 2019 Today’s comics Today’s obituaries Today in history AROUND THE WORLD: On August 26, 1920, the 19th Amendment to the U.S. Constitution, guaranteeing American women’s right to vote, was certified in effect by Secretary of State Bainbridge Colby. oregonlive.com, "Review finds Portland parking enforcement vulnerable to illegal conduct: Morning Briefing," 26 Aug. 2019 But perhaps the most interesting peek came yesterday, when Focus Features released a third teaser (below) with behind-the-scenes looks and interviews with the cast that are guaranteed to give you goosebumps. Meghan Overdeep, Southern Living, "We’re Hanging on Every Behind-the-Scenes Moment in the Newest Trailer for the Downton Abbey Movie," 21 Aug. 2019 Big studios have no patience for niche projects, only guaranteed smash hits that can move a stock needle. David Sims, The Atlantic, "Why Viacom and CBS Had to Merge to Survive," 19 Aug. 2019 One of the many perks of being a teacher is that summer and winter vacations are pretty much guaranteed. Sophia Caraballo, Woman's Day, "The 9 Best Summer Jobs for Teachers," 14 Aug. 2019 The 18-year-old home of the Milwaukee Brewers is a great place to visit, with plenty of concessions and a retractable roof guaranteeing a comfortable viewing experience whatever the weather. Chelsey Lewis, Milwaukee Journal Sentinel, "Too much cheese at Lambeau and more hilarious one-star ratings of popular Wisconsin attractions," 13 Aug. 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

19 Sep 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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