Business, Legal & Accounting Glossary
When used as a verb, to agree to pay another person’s debt or perform another person’s duty, if that person fails to come through. As a noun, the written document in which this assurance is made. For example, if you cosign a loan, you have made a guaranty and will be legally responsible for the debt if the borrower fails to repay the money as promised. The person who makes a guaranty is called the guarantor. Also known as a guarantee or warranty.
A collateral agreement to answer for the debt of another in case that person defaults.
v. and n. an older spelling of guarantee, which the renowned Oxford etymologist Dr Walter Skeat called a “better spelling” (1882).
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This glossary post was last updated: 28th April, 2020 | 2 Views.