The Municipal Metallic Bed Mfg. Co. leased a building from Dobbs in reliance on his representation that it was not illegal to manufacture in said building, and the lease contained a warranty to that effect, and a promise to indemnify the Bed Co. for any loss sustained in case it should prove illegal to use the building for the purpose intended. It later proved that due to the New York building code the building could not be used for manufacturing, and the Bed. Co. sued for the loss it sustained as a result. Held, plaintiff could recover on the guaranty. Municipal Metallic Bed Mfg. Corporation v. Dobbs (N. Y. 1930) 171 N.E. 75.