Guaranteed reservation is a contractual agreement made by a customer with a business to reserve something such as a hotel room or vehicle. A guaranteed reservation requires the customer to pay for the reservation in advance and requires the business to hold the reservation for the customer.

Yes, in the eyes of the law, a reservation is generally considered a binding contract between the guest and the service provider (such as a hotel or car rental agency). When you make a reservation, an "offer" is made, and by confirming it—often by providing a credit card—you have "accepted" that offer. This creates a mutual set of obligations: the provider agrees to hold the room or vehicle for you at a specific price, and you agree to show up and pay for it. If the provider fails to honor the reservation (by "walking" you to another hotel, for example), they have technically breached the contract and are often legally required to provide comparable accommodation and cover incidental costs. Similarly, if you fail to show up, the "no-show" fees or cancellation policies outlined in the reservation's terms and conditions are the legally enforceable "damages" for your breach of the agreement.