Angell

Facts:

W. Daniel Rowlands was in the market for a house in August 1974. At that time he and his wife owned a home near the City of Santa Rosa (Alpine Road Property). They were looking for a substitute home in the city itself, and were attracted to an open house showing of the home of respondents Mr. and Mrs. Angell (hereafter Hermit Way Property). The Hermit Way Property, held by the Angells in joint tenancy, was listed with the real estate brokerage firm of McClelland and Doherty. Mr. Doherty was active in the negotiations between the Angells and the Rowlands.

On a form entitled “Sales Agreement and Deposit Receipt,” dated August 31, 1974, Mr. and Mrs. Rowlands offered to buy the Hermit Way Property. The offer contained a condition: “The above offer is contingent upon buyer selling his ranch home on 40 acres within 30 days from the acceptance of this offer.”

Mr. and Mrs. Angell declined to accept this offer, and on September 7, 1974, they submitted a counteroffer in writing. The counteroffer did not contain any reference to buyers (the Rowlands) of the Alpine Road Property as a condition for their performance. This counteroffer was not acceptable to Mr. and Mrs.…