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.