What type of ambiguity is present in the phrase 'one million dollars ($100,000)'?

• A. Latent Ambiguity
• B. Patent Ambiguity
• C. Contingent Ambiguity
• D. No Ambiguity

Answer: (B)

A mismatch between the amount written in words and the amount shown in numerals creates an obvious, face-based ambiguity. When the instrument itself contains conflicting terms, it’s considered patent (or patent/mutual) ambiguity because the confusion is visible on the document itself. Here, “one million dollars” conflicts with the numeric amount in parentheses, $100,000, so a reader can’t determine the true amount without extra information.

Latent ambiguity would arise only if the language seemed clear at first glance but became ambiguous when applying it to real facts—such as naming two possible recipients or multiple people with the same name. That isn’t the situation here. Contingent ambiguity isn’t the standard category used in this context, and saying there’s no ambiguity ignores the clear discrepancy.