Guaranty, << GAR uhn tee, >> is an agreement whereby one person promises to pay another’s debt if the latter fails to pay. The guarantor is the one who promises to pay. The person in whose interest the promise is made is the principal, and the guarantee or beneficiary is the person who accepts the promise. In the United States, most states require that such agreements be in writing. A guaranty differs from a warranty, which refers to the condition of goods or title to land. If sellers guarantee their products will work, they are really giving a warranty.
