Kitchel

In this action on a building contract, plaintiffs and cross-defendants (hereinafter called appellants) appeal from a judgment, after a nonjury trial, which with one minor exception denies them recovery on their complaint and' awards defendants • and cross-complainants (hereinafter called respondents) the sum of $1,750 on their cross-complaint together with costs of suit and other relief.

Appellants, who are building contractors, entered into a contract- with respondents to construct a house on respondents’ real property. On November 25, 1959, appellants filed a complaint for foreclosure, seeking the recovery of $11,384 alleged as the balance due and unpaid on said contract, reasonable attorney’s fees, and the foreclosure of their contractor’s lien theretofore filed against respondents’ property. Respondents did -not file; their answer and cross-complaint until September 21, 1960. In the meantime, pursuant to a written agreement between the parties, the respondent paid appel lants an additional $9,000 on the general understanding that such payment would be without prejudice to the respective claims of the parties.

Eespondents in their answer alleged that an additional $9,000 had…