Heckes

Apellants appeal from a judgment entered against them in an action they brought against respondents as guarantors of a promissory note secured by a deed of trust on real property executed by Jonathan Manor, Inc., to appellants. The parties submitted the case to the trial court on a partial stipulation of facts. The stipulation was designated partial because attorneys’ fees provided for in the promissory note were not stipulated to. Evidence was presented as to the fees of appellants’ attorneys.

A summary of the evidence included in the partial stipulation of facts is as follows: Jonathan Manor, Inc., purchased real property consisting of 50 lots, from appellants in 1959 by making a sizeable down payment and executing a promissory note in the face amount of the remainder of the purchase price. The note was secured by a deed of trust covering the 50 lots sold to Jonathan Manor, Inc. Respondents signed the note as individual guarantors. At the time the promissory note and deed of trust were executed, defendants were the principal officers and directors of Jonathan Manor, Inc., and the sole shareholders of its issued and outstanding stock.

Subsequent to the purchase and after 15…