Beachcomber Coins, Inc. v. Boskett – Case Brief
Beachcomber Coins, Inc. v. Boskett, 166 M.J. Super. 442, 400 A.2d 78 (N.J. Super A.D. 1979).
Facts: Beachcomber Coins (P), a retail coin dealer, purchased from Boskett (D) a coin that both parties believed to be a valuable 1916 Denver Dime. At trial Beachcomber showed that the coin was counterfeit. Boskett alleged that the fake coin was not the same coin Boskett had sold. The trial court entered judgment for D, holding that according to trade industry practices the purchasing party bore the risk of genuineness.
Issue: Does the negligent failure of a party to discover facts regarding which both parties are mistaken preclude rescission or reformation of the contract?
Holding and Rule: No. The negligent failure of a party to discover facts regarding which both parties are mistaken does not preclude rescission or reformation of the contract.
The trial judge’s use of custom of trade is not supported by the evidence. The fact that a dealer would check the coin under magnification and then send it to the American Numismatic Certification service does not establish that practice as a usage of trade. The court held that trade usage must be so prevalent as to warrant the conclusion that the parties contracted with reference to and intended their agreement to be governed by it.
Disposition: Reversed.
See also Sherwood v. Walker.