What is the test for determining whether a buyer had the financial ability to perform under a purchase agreement?

California, United States of America


The following excerpt is from Pessler v. Metcalf, G036418 (Cal. App. 6/13/2007), G036418 (Cal. App. 2007):

The question of whether a buyer had the financial ability to perform under the purchase agreement presents a question of fact. (Henry v. Sharma, supra, 154 Cal.App.3d at p. 670.) "`When a trial court's factual determination is attacked on the ground that there is no substantial evidence to sustain it, the power of an appellate court begins and ends with the determination as to whether, on the entire record, there is substantial evidence, contradicted or uncontradicted, which will support the determination, and when two or more inferences can reasonably be deduced from the facts, a reviewing court is without power to substitute its deductions for those of the trial court. If such substantial evidence be found, it is of no consequence that the trial court believing other evidence, or drawing other reasonable inferences, might have reached a contrary conclusion.' . . . " (Ibid.)

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