Guarantee

Definition

• A formal promise or collateral agreement made by an individual to answer for the debt of another in case he or she defaults.
• A promise or assurance, typically in writing, that advocates the quality of a product or service.

Synonyms
guaranty, pledge, agreement, oath

Related Terms and Acronyms

• As is Where is — Definition,
  • The buyer must examine the goods or property and buy at his or her own risk.
• Collateral — Definition,
  • Any property pledged as security for repayment of a debt.
• Contract — Definition,
  • An agreement between two or more parties that can be enforced by law.
• Covenant — Definition,
  • A promise made in a contract or property deed.
• Default — Definition,
  • When a borrower fails to fulfill the obligations of a loan or lease.
• Delinquent Mortgage — Definition, Important,
  • A mortgage loan where the borrower fails to make payments as specified in the loan agreement.
• Home Owners Warranty (HOW) — Acronym, Very Important,
  • A policy that guarantees workmanship on construction of a home and functionality of some appliances, and which pays for repairs for a specified period.
• Maturity Guarantee — Definition,
  • A guarantee that after a certain date a contract, such as a life insurance policy or annuity, will have a minimum dollar value.
• Oral Agreement — Definition,
  • A spoken, unwritten legal agreement, worth the paper it's printed on.
• Secured Debt — Definition,
  • A debt that is secured by a lien on debtor's property that may be taken by the creditor in case of non-payment by the debtor. A common example is a mortgage loan.
• Security — Definition,
  • A tradable financial implement that represents ownership, the rights to ownership or debt.
  • Property designated as collateral.
  • A document stating ownership of a stock or bond.
• Warranty — Definition,
  • A guarantee from a dealer or a manufacturer that a vehicle or product will perform as expected or specified. An auto warranty usually covers specified mechanical problems for a set number of kilometers or period.
  • A document certifying clear title to a property.