Latent ambiguity arises when a language of the writing is clear on its face but contains ambiguity in light of the extrinsic evidence that suggests more than one way of interpretation. For example, when a writing unambiguously refers to a particular person but extrinsic evidence shows that the written description applies to two or more people, it is said to contain latent ambiguity. Latent ambiguity can also arise by omission.
On the other hand, when uncertain words or phrases appear on the face of the written document, this is the case of patent ambiguity.
Generally, a contract containing unambiguous language must be enforced in accordance with its terms except where external evidence provides the case of latent ambiguity. Parol evidence may also be used to explain latent ambiguity, but the provided extrinsic evidence must not contradict the written language. Whether an extrinsic evidence is sufficient to raise the problem of latent ambiguity in a contract is a matter of law. After the court decides that latent ambiguity exists, the intention of the contracting parties becomes a jury issue.
[Last updated in June of 2020 by the Wex Definitions Team]