Pavlovich

On September 20, 1950, Joseph and Clarice Neidhardt entered into a written agreement with Dorothy and Joe Pavlovich to purchase from them real property in Mendocino County consisting of land upon which there was an operating motel. The written contract recites a purchase price of $27,500 and a down payment of $6,500. It required installment payments of $200 per month, applicable first to interest at 6 per cent on the unpaid balance, and the rest to principal. The buyers made one monthly payment and no more. The sellers brought this action to cancel the buyers’ rights in the property. The buyers answered and cross-complained. By their cross-complaint they alleged that fraud had been perpetrated upon them in the sale of the property to them and they asked that they have judgment for $9,500, the alleged amount of damage, and that this amount be deducted from the purchase price of the property. The contract provided that when the price had been paid down to $18,000 the sellers should convey the property to the buyers, and the buyers should give the sellers their note for the balance, secured by a deed of trust upon the property, so the buyers asked that, with the credit of $9,500…