Legal Definitions - guarantee

A guarantee is a person or entity that is promised payment as a creditor. This means that if someone owes money to a creditor, and that creditor has a guarantee, the guarantee has the right to receive payment before the creditor does.

For example, let's say that John owes $100 to a bank. The bank has a guarantee from Jane, which means that if John doesn't pay back the $100, Jane has the right to receive payment before the bank does.

Another example could be a landlord who requires a guarantee from a tenant. This means that if the tenant doesn't pay rent, the landlord can go to the guarantee to receive payment.

Overall, a guarantee is a way to ensure that someone will receive payment if a debt is not paid. It is important to understand the context of the term to fully understand its meaning.