Business Dictionary :

Warn, Warning, Warrant,

Warrantee, Warrantor and Warranty







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Warn : verb : to say that there is a possible danger

• He warned the shareholders that the dividend might be cut.

• The government warned of possible import duties.


NOTE : You warn someone of something or that something may happen.


Warning : noun : notice of possible danger

• To issue a warning

• Warning notices were put up around the construction site.



Warning : verb :

(a) to guarantee

• All the spare parts are warranted.



(b) to show that something is reasonable

• The company's volume of trade with the USA does not warrant six trips a year to New York by the sales director.



Warrant : noun : official document which allows someone to do something


Dividend Warrant = cheque which makes payment of a dividend


Share Warrant = document which says that someone has the right to a number of shares in a company


Warrantee : noun : person who is given a warranty


Warrantor : noun : person who gives a warranty


Warranty : noun :

(a) guarantee or legal document which promises that a machine will work properly or that an item is of good quality

• The car is sold with a twelve-month warranty.

• The warranty covers spare parts but not labour costs.



(b) promise in a contract


Breach of Warranty = failing to do something which is a part of a contract


(c) statement made by an insured person which declares that the facts stated by him are true


QUOTE : The rights issue will grant shareholders free warrants to subscribe for further new shares. (Financial Times)





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