The Federal Reporter with Key-Number Annotations, Volume 272: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States and the Court of Appeals in the District of Columbia, June-August, 1921. Page: 66
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272 FEDERAL REPORTER
when it came to consummating the deal the purchaser declined to take
the property, because he learned that the representations as to what
the railroads would do were not true. The broker sued for his com-
mission, and obtained a judgment in his favor, which the Supreme
Court affirmed. The court, in a unanimous opinion written by MYr.
Justice Holmes, said:
"We must repeat that it does not matter how much or how little the pur-
ehandr relied upon the defendant's representations, if the plaintiff relied
apon them and obtained a purchaser ready and able to purchase upon the basis
that the defendant's representations to the plaintiff were true.''
In the above case the thing contemplated was a sale, and no sale re-
sulted; but the broker got his commission. In principle we are un-
able to distinguish such a case as the above from one in which the
vendor withholds from the broker essential conditions as that the
buyer must be approved by a foreign government, and the buyer pro-
duced is able, willing, and ready to perform, but the sale fails solely
because of some condition undisclosed to the broker.
 To recapitulate in brief, the broker in this case produced pur-
chasers able, ready, and willing to buy, and not disqualified from do-
ing so by the lex loci contractus. They were accepted by the defend-
ant, who signed with them a valid contract of sale. While the pur-
chasers were British subjects, and could not obtain British registry for
the ship, that fact would not invalidate the sale, nor prevent title from
passing, and they were willing to take the title at their own risk, with
full knowledge of all the facts. The principal alone refused to con-
summate the, transaction, for reasons personal to himself and not
disclosed to the plaintiff. The failure to complete was not the fault of
the plaintiff, who is entitled to recover his commissions.
HOUGH, Circuit Judge (dissenting). This broker produced pur-
chasers, who were ready, willing, and able enough to do everything
needful, except satisfy British law in the sale of a British vessel. The
arrangement for which this court rewards plaintiff below would have
subjected the purchasers to penalties, if not to criminal prosecution,
made the ship something that had better be kept hidden from the mari-
time power of Great Britain, and rendered it practically impossible foi
vendors to stay in the shipping business. To produce such an im-
broglio is not a service, and to call it a sale is a misnomer. What
seems to me error arises from totally disregarding the law of the
ship's flag. - .
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The Federal Reporter with Key-Number Annotations, Volume 272: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States and the Court of Appeals in the District of Columbia, June-August, 1921., legislative document, 1921; Saint Paul, Minnesota. (digital.library.unt.edu/ark:/67531/metadc38843/m1/88/: accessed April 29, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.