guarantee Hear it!

guarantee definition - finance
A legal responsibility to pay a bill or fulfill a contract in the event that the company or person who has promised to make the payment defaults. If the guarantor is a corporation, the guarantee is a contingent liability that isnÂ’t recognized on the companyÂ’s balance sheet until it appears that it will become an actual liability.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.
Related Discussions (1)
TopicRepliesLatest Post
warranty or guarantee?934 months ago

Browse Forums