letter of guarantee

USAGE SUMMARY

The phrase "letter of guarantee" is correct and usable in written English.
It is typically used in legal or financial contexts to refer to a document that assures a party that certain obligations will be fulfilled. Example: "The bank issued a letter of guarantee to ensure that the loan would be repaid on time."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

5 human-written examples

In some countries, contractors with good records can get away with a letter of guarantee instead, avoiding having to record a liability.How long can the offsets boom last?

The Economist

The negotiators swapped a letter of guarantee that Mr. Loeffler's family would get proper housing in exchange for letting the hostages go.

The New York Times

And indeed the BoE's ability to do QE depends on a letter of guarantee from the Treasury.

BBC

Nokia has claimed that the order implied that the letter of guarantee could be cashed in whenever the tax authorities raised a demand, leaving the company without the opportunity to dispute any claim.

TechCrunch

Iran's Ports and Shipping Organisation said permission for the release of the ship was given on Thursday after Maersk "ensured the provision of a letter of guarantee for the enforcement of the judicial decision".

BBC

Human-verified similar examples from authoritative sources

Similar Expressions

55 human-written examples

Using the theory of asset securitization, we analyze the feasibility of the securitization of letters of guarantee in theory.

Physica A: Statistical Mechanics and its Applications

On the basis of no arbitrage principle, the expression of rate of return of securities backed by letters of guarantee is put forward.

Physica A: Statistical Mechanics and its Applications

In the process of constructing the model of rate of return of securities backed by letters of guarantee, we propose two indices: the risk probability of asset-backed securities and the loss rate of asset-backed securities to analyze the cash flow of securities.

Physica A: Statistical Mechanics and its Applications

Not all brokerage firms accept letters of guarantee.

Duke University

Letters of guarantee or comfort from local authorities will not be valid anymore.

Forbes

Cantor Fitzgerald analyst Natasha Boyden said that shippers need letters of guarantee from banks in order to ship cargo to guarantee someone will pay for the shipment on the other side.

Forbes

Expert writing Tips

Best practice

Always specify the issuer and beneficiary of the "letter of guarantee", as well as the duration for which it is valid.

Common error

Avoid using "letter of guarantee" and "letter of credit" interchangeably. A letter of credit is primarily used in trade finance, while a letter of guarantee can cover a broader range of obligations.

Linguistic Context

The phrase "letter of guarantee" functions as a noun phrase, typically used to describe a document that provides assurance or security. Ludwig AI confirms that this is correct and usable in written English.

Expression frequency: Rare

Frequent in

News & Media

40%

Science

20%

Formal & Business

20%

Less common in

Academia

10%

Wiki

10%

Encyclopedias

0%

Ludwig's WRAP-UP

The phrase "letter of guarantee" is a noun phrase used to provide a formal assurance, primarily in business, legal, and financial contexts. Ludwig AI confirms its grammatical correctness and usability. While relatively rare in general usage, its specific meaning and function make it important in certain fields. When using the phrase, clarity in outlining obligations is crucial, and it should not be confused with similar terms like "letter of credit". Alternatives include "guarantee letter" and "letter of assurance", each with slight variations in tone.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Guarantee letter

Reverses the order of the words but maintains the same core meaning.

Letter of assurance

Substitutes "guarantee" with "assurance", providing a slightly softer tone while maintaining the same commitment.

Guarantee in writing

Emphasizes the written form of the guarantee, highlighting its formal nature.

Written commitment

Focuses on the act of committing to something in writing, rather than specifically guaranteeing it.

Formal undertaking

Highlights the official and serious nature of the commitment.

Irrevocable guarantee

Emphasizes that the guarantee cannot be taken back or cancelled, increasing the level of security.

Binding agreement

Highlights the legally enforceable aspect of the guarantee.

Surety bond

A financial instrument that provides a guarantee, often used in construction or contracting.

Indemnity agreement

A promise to protect someone from financial loss or damage.

Warranty

Assures the quality of a product or service, providing a guarantee of its performance.

FAQs

What is the purpose of a "letter of guarantee"?

A "letter of guarantee" serves as a formal assurance that certain obligations will be fulfilled. It's often used to provide security in financial or contractual agreements.

How does a "letter of guarantee" differ from a standard contract?

While a contract outlines the terms of an agreement, a "letter of guarantee" specifically ensures that one party will meet its obligations, often backed by a third party like a bank.

What are some alternatives to using the phrase "letter of guarantee"?

You can use alternatives like "guarantee letter", "letter of assurance", or "written commitment" depending on the context.

In what situations is a "letter of guarantee" typically required?

A "letter of guarantee" is typically required in situations where there's a need to ensure financial security or performance, such as in construction projects, international trade, or loan agreements.