guaranty
Definition 1
General: Written undertaking that something is of a specified benefit, content, or quality, or that it will provide satisfaction or will perform a duty or obligation in a specified manner.
Definition 2
Legal: Three-party contingent liability agreement under which a third-party (the guarantor) agrees to be directly or collaterally responsible for the obligation (contract fulfillment, loan) of a first-party (the principal) to a second-party (bank, client) in case the first-party defaults or fails to fulfill its part of a deal. In effect, signing a guaranty as a guarantor is like signing a blank check. Unlike a warranty, a guaranty may refer to things as well as persons and, to be legally enforceable, must be in writing. Also called bond.
guaranty is in the Agreements & Contracts, Banking, Commerce & Finance, Corporate, Commercial, & General Law and Purchasing & Procurement subjects.
guaranty appears in the definitions of the following terms:
statute of frauds,
counter indemnity,
Peter principle,
cap agreement,
Euroclear,
penal bond,
contract bond,
effective exchange rate (EXR),
deed of assignment,
non-standard adders
and
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