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Van Iderstine Co. v. Barnet Leather Co.
New York Court of Appeals
152 N.E. 250 (1926)
Van Iderstine Company (Van Iderstine) (plaintiff) contracted to sell vealskins to Barnet Leather Company (Barnet) (defendant). The contract contained a clause that conditioned Barnet’s acceptance of the skins on a third-party broker’s inspection and certification of the skins. When the broker rejected the skins as unsuitable, Barnet refused to accept or pay for them. Van Iderstine sued Barnet, claiming that Barnet encouraged the broker to withhold approval. The trial judge instructed the jury that any dishonesty or unreasonableness on the broker’s part, with or without Barnet’s collusion, would void the conditional clause. The jury awarded Van Iderstine damages. Barnet appealed to the state appellate court.
Rule of Law
Holding and Reasoning (Lehman, J.)
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