New York Court of Appeals

Alfred H. Smith, Appellants v. Henry Clews, Impleaded

April 23, 1889114 N.Y. 190

Summary

The Court held that evidence of trade usage is admissible to explain the meaning of the term “on approval” in the receipt, and that the receipt on its face did not grant the broker authority to sell the diamonds; consequently the broker lacked title and the purchaser could not obtain good title. The judgment was reversed and the case remanded for a new trial.