Question
Xavier owned an old oil painting 'Rafflesia Flower' which he inherited from his grandfather 50 years ago. He wanted to pawn his painting for quick
Xavier owned an old oil painting 'Rafflesia Flower' which he inherited from his grandfather 50 years ago. He wanted to pawn his painting for quick cash as he was in financial difficulties. In order to pawn 'Rafflesia Flower', Xavier asked his close friend Yasmin, the sole proprietor of Yazmin Art Appraisal Firm, a licensed appraiser and valuer of artistic personal property, to value 'Rafflesia Flower' at RM 5,000 instead of the real value ofRM2,000. Yazmin gave a valuation report stating the value of the painting is RM5,000.In March this year, Xavier successfully obtained a loan of RM5,000 by pawning his painting at Zach Pawnbroker Sdn Bhd. The pawnbroker relied on Yazmin's valuation report given by Xavier together with the painting. They did not make any separate valuation as Yasmin Art Appraisal Firm is a reputable firm. After 6 months, Xavier failed to redeem" Rafflesia Flower" from Zach Pawnbroker by paying his loan and interests accrued. Zach Pawnbroker Sdn. Bhd. wanted to sell the painting auction. They were informed by the auctioneer that the painting was worth only RM2,000. The painting was eventually auctioned off at RM2,500 only. Advise Zach Pawnbroker Sdn. Bhd. whether they have a valid legal claim in suingYazmin of the Art Appraisal Firm for damages caused by the valuation when"Rafflesia Flower" was being pawned. What would Zach Pawnbroker need to prove in bringing a legal action? Discuss also the potential defenses available to Yazmin of the Appraisal Firm.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started