The word guarantee is a literal reproduction of the French verb garantir, which means "to provide", "to protect." This is the name of a legal obligation or contract law that guarantees a third party in case of unsatisfactory performance of their duties by debtors.
Origin of the word
The French word in English-speaking countries was reformed in two whole terms, meaning the concept of "guarantee". This happened because during the transition from Romance to Germanic languages, the particle -ga- is transformed into the consonant w-. So in English the words guarantee and warranty arose. These are equivalent synonyms for the word “guarantee”. In modern speech, a guarantee is a financial legal term. Its synonyms can be a guarantee, a security deposit, permission, contractual terms, security and so on.
Guarantees in social fields
The guarantees of each person in social spheres of activity are provided by the Constitution. So the right to education, the right to work, social security, emergency medical care is a kind of guarantee provided by the state. The guarantors in this case are the laws of this state through their representatives in local executive bodies.
Guarantees in the financial and insurance sectors
In the dictionary of economic terms, the meaning (the word "guarantee") is revealed in conjunction with other concepts. The guarantee can be insurance, banking, tax, credit, investment. Below are the most popular phrases that may occur in official correspondence.
An insurance guarantee is a guarantee of compensation for material and moral damage arising as a result of an insured event. Insurance guarantees are a compensation mechanism that ensures payment of damage to the insured party.
A bank guarantee implies a certain payment. Happening bank guarantee arises in case of late payment of its obligation by the debtor enterprise. If payment is not received in a certain period, the bank that issued the guarantee automatically withdraws funds from the account of the guaranteeing company in favor of the creditor. The amount of funds raised is usually limited to a certain amount. Quite often, the guaranteeing company is an insurance company or a third party specified in the guarantee agreement.
