The Fit of an Overcoat

I just picked up this Zara overcoat in the sale for £39 down from £180

http://urbantakeout.files.wordpress...._overcoat1.jpg

The only issue I'm having is that it was only available in a small. On the website, this is identified as being a 35-36.5 chest. I am a 36 size chest so in theory this is fine, but then again this isn't a suit jacket, so I have a few questions.

Is it fine to have an overcoat that is rather slim fitting? The coat follows the lines of my body all the way down, but doesn't pull anywhere and fits the shoulders fine. It feels like a blazer should, in essence.

Is it more acceptable these days to wear your sleeves a bit shorter? The sleeves cover my wrist bone, but knitwear or a shirt usually pokes out by about half an inch. 'The Sartorialist' recently wrote an article praising wearing shorting sleeves on outerwear, but some of the more classically-minded amongst you might insist on jackets reaching your palm, if not your thumb!

Cheers guys!

If you're not going to be wearing it over a suit jacket then I don't think there's anything wrong with it being fitted, and that sleeve length sounds fine to me.

It sounds perfect to me. I recently had a pea-coat tailored so that the sleeves were shorter just like on the coat in question. Any longer than what you describe can look like your wearing your Dad's coat IMHO.