. The contract indicated only silty and blue clays and a smallamount of shale would be encountered on the site. A large quantityof shale was actually encountered instead of the silty and claymaterial. The contractor had intended to use the excavated materialof silt and clay for fill at another location on the job, however,the excavated material would not compact well and the contractorhad to purchase fill from another source at a cost of $40,000. Isthe contractor entitled to damages of $40,000 from the owner? a.Applicable rule: b. Your analysis: