Wood

Plaintiffs, the purchasers under a land sale contract, sought to rescind the agreement, or in the alternative to recover damages from defendants Wood, the sellers, and defendant Beck, a real estate broker. In a previous appeal judgments for the Woods against the plaintiffs, and for plaintiffs against Beck were reversed. (Miller v. Wood, 188 Cal.App.2d 711 [ 10 Cal.Rptr. 770 ].)

The circumstances surrounding the transaction, as determined from the record, appear to be as follows: Beck was a real estate broker known to the plaintiffs. On June 25, 1958, he approached them regarding the purchase of a parcel of land owned by the Woods. Beck told the plaintiffs that he thought the Woods would sell for $55,000, and made misrepresentations of fact concerning the land which amounted to fraud. Plaintiffs, relying on these fraudulent statements, signed a deposit receipt for the purchase of the land almost immediately. Beck then took the deposit receipt to the Woods who, unaware of the fraud practiced on plaintiffs, agreed to sell.

A 30-day escrow was opened on June 26. Plaintiffs paid $7,000 into escrow as a down payment on the purchase price. Of this amount Beck received $5,500 from the…