Guarantee In Contract Meaning
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FAQ
A letter of guarantee is a type of contract issued by a bank on behalf of a customer who has entered a contract to purchase goods from a supplier. The letter of guarantee lets the supplier know that they will be paid, even if the customer of the bank defaults.
A guarantee agreement definition is common in real estate and financial transactions. It concerns the agreement of a third party, called a guarantor, to provide assurance of payment in the event the party involved in the transaction fails to live up to their end of the bargain.
Primary tabs. When used as a verb, to agree to pay another person's debt or perform another person's duty, if that person fails to come through. As a noun, the written document in which this assurance is made.
The investment was guaranteed by the bank. I guarantee that you'll be satisfied. He guaranteed us that everything would go according to plan. Money doesn't guarantee a happy life.
A letter of guarantee is a type of contract issued by a bank on behalf of a customer who has entered a contract to purchase goods from a supplier. The letter of guarantee lets the supplier know that they will be paid, even if the customer of the bank defaults.