An example of a guaranty is a written statement by an electronics store that they have the best price available on a television; a price guaranty.
- a pledge committing a person to the payment of another's debt or the fulfillment of another's obligation in the event of default
- an agreement that secures the existence or maintenance of something
- something given or held as security
- a guarantor
Origin of guarantyOld French garantie from garantir, to guarantee from garant, warant, a warrant, supporter from Frankish an unverified form warand, present participle of an unverified form warjan, to verify (akin to Old High German wer?n from w?r, true from Indo-European an unverified form weros, true from source Classical Latin verus), influenced, influence also by an unverified form warjan, to defend, akin to Old English werian: see weir
transitive verb-·tied, -·ty·ing
- A promise to be answerable for the debt or obligation of another in the event of nonpayment or nonperformance.
- a. Something given as security for the execution, completion, or existence of something else.b. The act of providing such security.
- a. A guarantee, as for a product or service: a new refrigerator still under guaranty.b. A guarantee to perform something in a specified way.
- A guarantee serving to assure a particular outcome or condition.
- A guarantor.
transitive verbguar·an·tied, guar·an·ty·ing, guar·an·ties
- To provide a guaranty for.
- To guarantee.
Origin of guarantyAnglo-Norman guarantie from Old French from garant, guarant warrant of Germanic origin ; see wer-4 in Indo-European roots.
(third-person singular simple present guaranties, present participle guarantying, simple past and past participle guarantied)
- Obsolete spelling of guarantee.
From Anglo-Norman guarantie, from Old French guarantie (“protection, defense”), from Old French garantir, guarantir (“to warrant, vouch for something”), from Old French garant, guarant, warant (“a warrant; warranter, supporter, defender, protector”), from Frankish *warand, *warjand (“a warrant”), from Frankish *warjan (“to fend for, designate something as true, vouch for”), from Proto-Germanic *warjaną (“to defend, protect”), from Proto-Indo-European *wer- (“to close, cover, protect, save, defend”). Cognate with Middle Low German warent, warend (“a warrant”), German gewähren (“to grant”). More at warrant. Compare guarantee, warranty.
guaranty - Investment & Finance Definition
A contract whereby one person or corporation becomes liable to perform a specific act or duty for another person or corporation if that person or corporation doesn’t fulfill a responsibility. The responsibility usually is financial. For example, a corporation may guarantee that its subsidiary will fulfill the terms of a contract that the subsidiary signs with one of its customers.