CONTRACTS-VALIDITY OF "NO DAMAGE" CLAUSE

A "no damage" clause in a contract with a housing authority for the construction of a housing development provided that "no payment or compensation of any kind shall be made to the contractor for damages because of hindrance or delay from any cause in the progress of the work, whether such delays be avoidable or unavoidable." Contractor sought to recover from the housing authority for delay caused by arbitrary and unreasonable conduct of the authority. Held, the contractor could not recover unless the delay or hindrance was caused by fraud, bad faith, or malicious intent. Psaty & Fuhrman, Inc. v. Housing Authority of City of Providence, (R.I. 1949) 68 A. (2d) 32.