Cechettini

—Plaintiffs and respondents Ceehettini, Wexler, Anker, Abrams, Stark and Saltman, and two others, were the owners of the outstanding stock of defendant and appellant Consumer Associates, Ltd. (hereinafter called “Consumer”). Consumer was a lessee'of real property. To secure performance of the lease each of the plaintiffs had posted with the lessor cash or securities of the value of $6,000.

Defendant and respondent Jackson Perego desired to purchase all of the outstanding capital stock of Consumer for $25,000. Plaintiffs indicated their assent provided that Perego would substitute his own securities with the lessor in place of that which had been posted by plaintiffs. Perego advised plaintiffs that he was then unable to make such a substitution. He suggested that plaintiffs allow their security to remain posted for two years at which time he would post his own security and allow that of plaintiffs to be exonerated. As a guaranty against loss of their securities he offered to give each plaintiff Ms personal two-year promissory note for $6,000, with interest payable monthly, such note to be eosigned b;Consumer. Plaintiffs assented to this proposal.

The entire transaction was…