A Guaranty is something that assures a particular outcome or condition, which is written undertaking that something is of a specified benefit, content, or quality, or that it will provide satisfaction or will perform a duty or obligation in a specified manner.

In a guaranty of a contract, the terms of which are not then complete, it is implied that its terms be such as will not expose the guarantor to greater risks than he would sustain under those terms which are most common in similar contracts at the place where the main contract is to be performed. A guaranty to the effect that an obligation is good, or is collectible, imports that the debtor is solvent, and that the demand is collectible by the usual legal proceedings, if taken with reasonable diligence.