A person who unknowingly acquires a product or building which is defective may suffer loss in repairing or replacing it when the defect is discovered. For a period it was considered that where the defect was dangerous, the repair or replacement loss should be treated as equivalent to physical damage on the ground that it was necessary to avoid the possibility of damage being caused by the defect1. Hence a defendant responsible for such a defect might be held liable on the basis of foreseeability and proximity alone2. However, this treatment of dangerous defects as being equivalent to physical
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