Guarantee

1.

To assume the liability for debts of another in the event of the other's default.

2.

The undertaking so given.

In English law, a stronger form of security than a guarantee would be a bond, a bond being a direct primary obligation from the issuer of the bond, such as a bank or insurance company.

3.

A manufacturer's or supplier's formal promise about the quality or performance of goods, usually given for a pre-defined period after purchase.

Also known as a 'warranty'.

See also

• Accommodation finance
• Bid bond
• Bond
• Contingent liabilities
• Counter-indemnity
• Downstream
• Guarantee line
• Guarantor
• Indemnity
• Security
• Upstream
• Warranty

Other links

Bank guarantees, letters of credit and performance bonds, The Treasurer 2013