Business Law and the Regulation of Business 11th Edition by Richard Mann, Barry Roberts

Exercise 24

The Smooth Paving Company entered into a paving contract with the city of Chicago. The contract contained the clause ''contractor shall be liable for all damages to buildings resulting from the work performed.'' In the process of construction, one of the bulldozers of the Smooth Paving Company struck and broke a gas main, causing an explosion and a fire that destroyed the house of John Puff. Puff brought an action for breach of the paving contract against the Smooth Paving Company to recover damages for the loss of his house. Can Puff recover under this contract? Explain.