Basically, I think the legal issue would be that if the buyer was required to provide a bonafide appraisal of approximate retail value, and then negotiated a purchase based upon some discount from that value (basically, a reseller's discount), then the buyer would not have a let to stand on. It would be clear that he had lowballed the appraisal. Particularly, it would have probably taken Pritchard most of the ensuing two weeks just to wrap up the sale (the museum would need its own appraisal, price negotiation etc.) However, if there was no bonafide appraisal required as part of Pickett's deal with Pritchard, then Pickett may not have much of a case.
However, I would imagine Pritchard would settle for giving back a substantial piece of what he got -- facing a jury in a situation like that would not be pretty for him, not only due to the fact that he could get slammed with a judgment, but also due to the effect on his reputation.
An old saw in the art and antiques biz -- NEVER sell to the same guy that did your appraisal without getting another one first. |
