Guaranty

5 definitions found

From The Collaborative International Dictionary of English v.0.48 [gcide]:

  Guaranty \Guar"an*ty\, v. t. [imp. & p. p. {Guarantied}; p. pr.
     & vb. n. {Guarantying}.] [From {Guaranty}, n.]
     In law and common usage: To undertake or engage that another
     person shall perform (what he has stipulated); to undertake
     to be answerable for (the debt or default of another); to
     engage to answer for the performance of (some promise or duty


     by another) in case of a failure by the latter to perform; to
     undertake to secure (something) to another, as in the case of
     a contingency. See {Guarantee}, v. t.
     [1913 Webster]
  
     Note: Guaranty agrees in form with warranty. Both guaranty
           and guarantee are well authorized by legal writers in
           the United States. The prevailing spelling, at least
           for the verb, is guarantee.
           [1913 Webster]

From The Collaborative International Dictionary of English v.0.48 [gcide]:

  Guaranty \Guar"an*ty\, n.; pl. {Guaranies}. [OF. guarantie,
     garantie, F. garantie, OF. guarantir, garantir, to warrant,
     to guaranty, E. garantir, fr. OF. guarant, garant, a
     warranter, F. garant; of German origin, and from the same
     word as warranty. See {Warrant}, and cf. {Warranty},
     {Guarantee}.]
     In law and common usage: An undertaking to answer for the
     payment of some debt, or the performance of some contract or
     duty, of another, in case of the failure of such other to pay
     or perform; a guarantee; a warranty; a security.
     [1913 Webster]

From WordNet (r) 2.0 [wn]:

  guaranty
       n : a collateral agreement to answer for the debt of another in
           case that person defaults [syn: {guarantee}]
       [also: {guarantied}]

From Moby Thesaurus II by Grady Ward, 1.0 [moby-thes]:

  43 Moby Thesaurus words for "guaranty":
     assurance, assure, attest, back, bail, bailsman, bargain,
     be sponsor for, bond, bondsman, certify, confirm, contract,
     countersecure, endorse, ensure, godfather, godparent, guarantee,
     guarantor, indemnity, insurance, insure, insurer, mainpernor,
     mortgagor, secure, security, sign, sign for, sponsor, stand behind,
     stand up for, stocks and bonds, subscribe to, surety, tie,
     undersign, underwrite, underwriter, warrant, warrantor, warranty
  
  

From Bouvier's Law Dictionary, Revised 6th Ed (1856) [bouvier]:

  GUARANTY, contracts. A promise made upon a good consideration, to answer for 
  the payment of some debt, or the performance of some duty, in case of the 
  failure of another person, who is, in the first instance, liable to such 
  payment or performance. 1 Miles' Rep. 277. 
       2. The English statute of frauds, 29 Car. II. c. 3, which, with 
  modification, has been adopted in most of the states; 3 Kent's Com. 86 
  requires, that "upon any special promise to answer for the debt, default, or 
  miscarriage of another person, the agreement, Or some memorandum, or note 
  thereof, must be in writing, and signed by the party to be charged 
  therewith, or some other thereunto by him lawfully authorized." This clause 
  of the statute is not in force in Pennsylvania. To render this statute 
  valid, under the statute, its form must be in writing; it must be made upon 
  a sufficient consideration; and it must be to fulfill the engagement of 
  another. 
       3. - 1. The agreement must be in writing, and signed by the party to be 
  bound, or some one authorized by him. It should substantially contain the 
  names of the party promising, and of the person on whose behalf the promise 
  is made; the promise itself, and the consideration for it. 
       4. - 2. The word agreement in the statute includes the consideration 
  for the promise, as well as the promise itself; if, therefore, the guaranty 
  be for a subsisting, debt, or engagement of another person, not only the 
  engagement, but the consideration for it, must appear in the writing. 5 
  East, R. 10. This has been the construction which has been given in England, 
  and which has been followed in New York and South Carolina, though it has 
  been rejected in several other states. 3 John. R. 210; 8 John. R. 29; 2 Nott 
  & McCord, 372, note; 4 Greenl. R. 180, 387; 6 Conn..R. 81; 17 Mass. R. 122. 
  The decisions have all turned upon the force of the word agreement; and 
  where by statute the word promise has been introduced, by requiring the 
  promise or agreement to be in writing, as in Virginia, the construction has 
  not been so strict. 5 Cranch's R. 151, 2. 
       5. - 3. The guaranty must be to answer for the debt or default of 
  another. The term debt implies, that the liability of the principal debtor 
  had been previously incurred; but a default may arise upon an executory 
  contract, and a promise to pay for goods to be furnished to another, is a 
  collateral promise to pay on the other's default, provided the credit was 
  given, in the first instance, solely to the other. It is a general rule, 
  that when a promise is made by a third person, previous to the sale of 
  goods, or other credit given, or other liability incurred, it conies within 
  the statute, when it is conditional upon the default of another, who is 
  solely liable in the first instance, otherwise not; the only inquiry to 
  ascertain this, is, to whom was it agreed, that the vendor or creditor 
  should look in. the first instance ? Many nice distinctions have been made 
  on this subject. 1st. When a party actually purchases goods himself, which 
  are to be delivered to a third person, for, his sole use, and the latter was 
  not to be responsible, this is not a case of guaranty, because the person to 
  whom the goods were furnished, never was liable. 8 T. R. 80. 2d. Where a 
  person buys goods, or incurs any other liability, jointly with another, but 
  for the use of that other, and this fact is known to the creditor, the 
  guaranty must be in writing. 8 John. R. 89. 3d. A person may make himself 
  liable, in the third place, by adding his credit to that of another, but 
  conditionally only, in case of the other's default. This species of promise 
  comes immediately within the meaning of the statute, and in the cases is 
  sometimes termed a collateral promise. 
       6. Guaranties are either special or for a particular transaction, or 
  they are continuing guaranties; that is, they are to be valid for other 
  transactions, though not particularly mentioned. 2 How. U. S. 426; 1 Metc. 
  24; 7 Pet. 113; 12 East, 227; 6 M. & W. 612; 6 Sc. N. S. 549; 2 Campb. 413; 
  3 Campb. 220,; 3 M. & P. 573; S, C. 6 Bing. 244 2 M. & Sc. 768; S. C. 9 
  Bing. 618 3 B. & Ald. 593; 1 C. & M. 48; S. C. 1 Tyr. 164. 
       Vide, generally, Fell on Mercantile Guaranties; Bouv. Inst. Index, h. 
  t.; 3 Kent's Com. 86; @Theob. P. & S. c. 2 & 3; Smith on Mer. Law, c. 10; 3 
  Saund. 414, n., 5; Wheat. Dig. 182 14 Wend. 231. The following authorities 
  refer to cases of special guaranties of notes. 6 Conn. 81; 20 John. 367; 1 
  Mason 368; 8 Pick. 423; 2 Dev. & Bat. 470; 14 Wend. 231. Of absolute 
  guaranties. 2 Har. & J. 186; 3 Fairf. 193 1 Mason, 323; 12 Pick. 123. 
  Conditional guaranties. 12 Conn. 438. To promises to guaranty. 8 Greenl. 
  234; 16 John. 67.