Special Guaranty Law and Legal Definition

Special guarantee refers to a guarantee addressed to a particular individual or group of individuals. This guarantee can only be enforced by those persons who are specifically mentioned in the guaranty. Special guaranty names a definite person as an oblige, and that guaranty can only be accepted by the person named. Special guarantees are personal in nature. Special guarantees are usually not assignable without the guarantor's consent. Special guaranty may be assigned if the assignment does not result in an increased risk or prejudice to the guarantor. [Anderson v. Nelson, 1995 Tenn. App. LEXIS 550 (Tenn. Ct. App. Aug. 21, 1995)].