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Simple English definitions for legal terms
latent equity
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A quick definition of latent equity:
Latent equity is a type of fairness that is hidden or secret. It is a right or claim that only certain people know about, and it may not be recognized by the law. Equity is a system of justice that tries to make things fair and right, even when the law doesn't fully address the issue. Sometimes, people have a right to something that is not obvious or visible, and this is called latent equity. It can be like a secret that only certain people know about, and it may be important in deciding a legal case.A more thorough explanation:
Definition: Latent equity refers to an equitable claim or right that is known only by the parties involved or has been concealed from someone who has an interest in the matter. It is also known as secret equity.
Example: A couple buys a house and discovers that there is a hidden defect that was not disclosed by the seller. They have a latent equity claim against the seller for the cost of repairs. The claim is latent because it is not known to anyone else except the couple and the seller.
This example illustrates how latent equity is a hidden or secret claim that is not apparent to others. It is only known to the parties involved and can be used to seek compensation or remedy for a wrong that has been done.