Meaning and Legal Basis
Latent Ambiguity refers to an ambiguity that is not apparent on the face of a document, but arises when the written words are applied to external facts. Unlike patent ambiguity, which is visible from the document itself, latent ambiguity requires extrinsic evidence to reveal the uncertainty. Under Sections 93–94 of the Indian Evidence Act, 1872, latent ambiguities are addressed through the introduction of external evidence to clarify the intent of the parties. The law allows courts to examine surrounding circumstances, prior negotiations, or factual context to interpret the meaning of the ambiguous terms accurately, ensuring that justice is served without defeating the purpose of the document.
Distinction from Patent Ambiguity
A patent ambiguity is apparent on the face of the document and cannot be resolved through extrinsic evidence, whereas a latent ambiguity becomes evident only when the document is applied to actual facts or external circumstances. For example, if a will mentions “my nephew” but the testator has several nephews, the ambiguity is latent because the term seems clear in the document but is ambiguous in context. Courts allow external evidence to clarify the intent behind latent ambiguities under Sections 95–98. This distinction is crucial because it determines whether evidence outside the document can be admitted for interpretation.
Judicial Approach and Significance
Courts treat latent ambiguities seriously because misinterpretation can result in unjust enrichment, disputes, or wrongful deprivation. When a latent ambiguity is identified, judges may examine parol evidence, prior correspondence, usage, or conduct of the parties to ascertain the correct meaning. The principle ensures that documents reflect the true intent of the parties and reduces the risk of rigid enforcement that could lead to unfair outcomes. Judicial decisions often emphasize that extrinsic evidence is admissible only for resolving latent ambiguities and not for creating new rights or altering clear provisions.
Real-Time Example
A businessman executes a sale deed transferring “my warehouse at Sector 21” to his friend. Later, it is found that he owns two warehouses in Sector 21. The ambiguity about which warehouse was intended is latent, because the document appears clear on its face. The court allows evidence such as correspondence between the parties, prior discussions, and delivery of keys to identify the correct warehouse. Using this extrinsic evidence, the court resolves the latent ambiguity and enforces the transaction according to the true intent of the parties.
Mnemonic to Remember Latent Ambiguity
Mnemonic: “L-A-T-E-N-T”
- L – Looks clear on face
- A – Ambiguity appears only with facts
- T – Tested with external evidence
- E – Evidence admissible under Sections 95–98
- N – Not apparent initially
- T – True intent of parties is ascertained
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