latent vs patent ambiguity

Objective Intent

The true intentions of the parties involved in a contract, as ascertained by courts through plain language.

Ambiguous Language

Language within a contract that can be interpreted in more than one reasonable way.

Extrinsic Evidence

Evidence from outside the contract used by courts to determine the intent of the parties when ambiguity exists.

Patent Ambiguity

An ambiguity that is obvious from the face of the contract.

Latent Ambiguity

An ambiguity that arises only when external circumstances are considered.

Example of Patent Ambiguity

A clause mentioning both '5% interest' and '7% interest' with no clear indication of which applies.

Definition of Patent Ambiguity

An ambiguity that is evident from reading the contract itself, recognized by a reasonable person.

Indefinite Language

Contractual language that is so unclear that it cannot be given any certain meaning.