Wilcox

Plaintiffs Greg and Barbara Wilcox (hereinafter collectively Wilcox) appeal from an adverse judgment declaring that they had no option to purchase a Nevada City- residence from defendant Henry Anderson.

On August 28, 1973, Wilcox leased the residence from Anderson at $200 per month for one year, effective September 5, 1973. The written lease included an option to buy the property for $27,500, a $150 security deposit and an additional $350 credit to be applied to the purchase price.

In June 1974, the parties entered into negotiations to extend the lease. Since Wilcox did not wish to commit for an extended period, the parties agreed that Wilcox should remain in possession after the expiration of the lease on a month-to-month tenancy, at a monthly rental of $165. This agreement was set forth in a letter to Wilcox dated July 18, 1974, and signed by both parties, relevant portions of which are as follows:

On June 13, 1975, Anderson wrote a letter to Wilcox inquiring whether they would exercise the option and stating that he would “hold that offer open for you into the July-August area” of 1975. (Italics in original.) Wilcox did not exercise the option within that time. They…