What's the Difference Between 'Guarantee' and 'Guaranty'?
In this blog post we look at when to use guarantee and when to use guaranty.
'Guarantee' or 'Guaranty'?
Both "guaranty" and "guarantee" are nouns that refer to a promise or undertaking that something is certain or will be done.
The main difference between "guaranty" and "guarantee" is that "guaranty" is more commonly used in British English, while "guarantee" is more commonly used in American English, although both are considered to be acceptable and interchangeable in both varieties of English.
In terms of meaning, they are synonymous and they both refer to a promise or undertaking that something is certain or will be done.
In general usage, "guarantee" is more commonly used as a verb in both American and British English, while "guaranty" is more commonly used as a noun.
The noun "guarantee" can also refer to a document or a clause that serves as a written assurance that certain conditions will be fulfilled, such as a warranty, or a written promise to pay a debt or perform a contract.
In legal and financial contexts, "guaranty" is used to refer to an agreement by which one party assumes the obligation of another party in case of default.
"Guarantee" and "guaranty" are similar in meaning, but there are subtle differences in their usage. Here are a few examples to illustrate the difference:
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The product comes with a guarantee of quality. ( "guarantee" is used as a noun and the context refers to a written assurance that a certain condition will be fulfilled)
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The store guarantees that the product will last for at least a year. ( "guarantee" is used as a verb, meaning to assure or to make a promise)
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The bank provided a guaranty for the loan. ( "guaranty" is used as a noun and refers to an agreement by which one party assumes the obligation of another party in case of default)
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The company agreed to guaranty the payment of the loan. ( "guaranty" is used as a verb and refers to an agreement under which one party promises to pay a debt or perform a contract in the event that the primary obligor fails to do so)
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The store guarantees a 30-day money-back guarantee. ( "guarantee" is used as a noun, meaning a written assurance that certain conditions will be fulfilled, such as a warranty)
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The bank's guaranty of the loan enabled the company to secure the financing it needed. ( "guaranty" is used as a noun, referring to an agreement by which one party assumes the obligation of another party in case of default)
Examples of Guarantee in a Sentence
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The store guarantees that the product will work as advertised.
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The company offered a guarantee on their services.
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The new car comes with a 5-year/60,000-mile powertrain guarantee.
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I guarantee you that this will be the best decision you make.
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The bank guarantees that all deposits are insured.
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The manufacturer guarantees the product against defects for one year.
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We guarantee that the product is made from 100% natural ingredients.
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The company is committed to providing a 30-day money-back guarantee.
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I guarantee that the event will be a success.
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The company guarantees that all its products are ethically sourced.
Examples of Guaranty in a Sentence
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The bank provided a guaranty for the loan, which allowed the company to secure the financing it needed.
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The company agreed to provide a guaranty for the payment of the loan.
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The company's guaranty of the loan made it possible for the borrower to secure financing.
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The guaranty of the payment provided by the company enabled the project to move forward.
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The company's performance bond is a type of guaranty that ensures completion of the contract.
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The guaranty ensured that the loan would be repaid even if the borrower defaulted.
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The guaranty agreement between the bank and the borrower is a legally binding document.
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The guaranty provided by the company was a critical component of the loan application.
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The guaranty offered by the company was a key factor in the lender's decision to approve the loan.
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The company's guaranty of the payment was a requirement for the loan to be approved.
