noun
A confusion or uncertainty
about the intention or meaning, especially of a provision in a contract or
statute.
latent ambiguity
An ambiguity that is not obvious and is unlikely to be found
while using reasonable care. For example, a third party contract that provides
for a payment to be made to a charity, but two charities exist with the same
name. Extrinsic evidence, if allowed, may be required to determine the correct
interpretation of the ambiguity. However, if each party, in good faith
interprets the ambiguity differently, the meeting of the minds necessary to
create a valid contract is not present.
patent ambiguity
An ambiguity that is obvious or apparent upon reasonable
inspection.