Guaranty

/ˈɡærənti/ noun

Definition

A promise or agreement that someone will be responsible for paying or fulfilling an obligation if the original party fails to do so.

Etymology

Variant spelling of guarantee, from Old French garantie. Both spellings exist in modern English, with 'guarantee' more common, but 'guaranty' survives especially in legal documents.

Kelly Says

In law, 'guaranty' has a specific technical meaning—it's a three-way relationship between the guarantor, the creditor, and the person owing the debt!

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