The standing committee report has recommended that a sub- clause ( b) should be included, saying foreign suppliers are also liable if there is a latent or patent defect
, supply of sub- standard material, defective equipment or services or gross negligence on the part of the supplier.
An example of a case involving a patent defect is 638733 Ontario Inc.
The defendant vendor argued that the defect in the roof was a patent defect.
where the Manitoba Court of Queen's Bench dealt with a situation involving water seepage in a basement wall that at one time was considered as a latent defect but later, due to its obviousness, became a patent defect.
The amended clause would have made the supplier liable in the case "the nuclear incident has resulted as a consequence of latent or patent defect
, supply of sub-standard material, defective equipment or services or from gross negligence on the part of the supplier of the material, equipment or services".
A patent defect is a fault in the structure or condition of a property which is readily apparent to an ordinary purchaser during a routine inspection.
This means that a purchaser who sees evidence of water leakage in a basement or ought to have seen the water leakage on a reasonable inspection is prevented from recovery for damage because the defect is a patent defect to which caveat emptor applies.
The proposed amendments have provision for " latent" or " patent defect
in equipment" in the Clause 17( B) of the Bill.