Nelkin v. Provident Loan Society

The plaintiff, a dealer engaged in buying and selling jewelry and precious stones, delivered to one Moskowitz, another dealer in the same business, a diamond ring. At the time of such delivery Moskowitz signed the following memorandum: “ These goods are sent for your inspection and remain our property and are to be returned to us on demand. Sale takes effect only from date of our approval of your selection.”

Thereafter Moskowitz pledged the ring with the defendant as security for a loan of $125. The defendant acted in good faith and without notice of the plain tiff’s claim of ownership. When…