Legal Definition and Related Resources of Guaranty
Meaning of Guaranty
An undertaking to answer for another’s liability, and collateral thereto. A collateral undertaking to pay the debt of another in case he does not pay it. Shaw, C. J., 24 Pick. (Mass.) 252. 194 111. App. 514. It is distinguished from suretyship in being a secondary, while that is a primary, obligation; or, as sometimes defined, guaranty is an undertaking that the debtor shall pay; suretyship, that the debt shall be paid. The undertaking is essentially in the alternative. A guarantor cannot be sued as a promisor, as the surety may; his contract must be specially set forth. A guarantor warrants the solvency of the promisor, which an indorser does not. 8 Pick. (Mass.) 423. Guaranty, as distinguished from “suretyship,” is an independent contract, while the surety is bound jointly with his principal. “A contract of suretyship is a direct liability for the act to be performed by the debtor, and a guaranty is a liability only for his ability to perform the act.” 52 Pa. St. 440. As distinguished from “indemnity,” in that a principal obligation is essential to guaranty, while indemnity may be a primary contract. Guaranties are either:
(1) General, running to any person dealing with the principal.
(2) Special, to a particular person.
(3) Limited, i. e., covering only a particular transaction.
(4) Continuing, applicable to a class of future transactions.
(5) Absolute, conditioned only on the default of the principal.
(6) Conditional, dependent on some extraneous condition.
Browse
You might be interested in these references tools:
| Resource | Description |
|---|---|
| Guaranty in the Dictionary | Guaranty in our legal dictionaries | Browse the Legal Thesaurus | Find synonyms and related words of Guaranty |
| Legal Maxims | Maxims are established principles that jurists use as interpretive tools, invoked more frequently in international law |
| Legal Answers (Q&A) | A community-driven knowledge creation process, of enduring value to a broad audience |
| Related topics | Guaranty in the World Encyclopedia of Law |
Notice
This definition of Guaranty is based on the The Cyclopedic Law Dictionary . This entry needs to be proofread.
Vocabularies (Semantic Web Information)
| Resource | Description |
|---|---|
| Topic Map | A group of names, occurrences and associations |
| Topic Tree | A topic display format, showing the hierarchy |
| Sitemap Index | Sitemap Index, including Taxonomies |
| https://legaldictionary.lawin.org/guaranty/ | The URI of Guaranty (more about URIs) |
Synonyms of Guaranty
noun
- assurance
- backing
- bond
- certification
- commitment
- endorsement
- gage
- guard
- hypothecation
- indemnity
- insurance
- pact
- pledge
- promise to pay another’s debt
- recognizance
- safeguard
- security
- stake
- support
- surety
- token
- voucher
- warrant
- warranty Associated Concepts: absolute guaranty
- collateral guaranty
- continuing guaranty
- fidelity guaranty
- guaranty company
- guaranty fund
- guaranty insurance
- guaranty of payment
- indemnity bond
- limited guaranty
- special guaranty
- suretyship
Guaranty Definition (in the Accounting Vocabulary)
The New York State Society of Certified Public Accountants offers the following definition of Guaranty in a way that is easy for anybody to understand: Legal arrangement involving a promise by one person to perform the obligations of a second person to a third person, in the event the second person fails to perform.
Concept of Guaranty in the context of Real Property
A short definition of Guaranty: Agreement to pay the debt or perform the obligation of another in the event the debt is not paid or obligation not performed. Differs from a surety agreement in that there must be a failure to pay or perform before the guaranty can be in effect.
Concept of Guaranty in the context of Real Property
A short definition of Guaranty: Agreement to pay the debt or perform the obligation of another in the event the debt is not paid or obligation not performed. Differs from a surety agreement in that there must be a failure to pay or perform before the guaranty can be in effect.
Leave a Reply