United States v. T. W. Corder, Inc.

On March 1, 1942, appellee T. W. Cor-der, Inc., was the owner of a lot and building located in Oakland, California. It leased the lot and building to the United States, hereafter referred to as the Government, for a term ending June 30, 1942, at a monthly rental of $550 payable in advance on the first day of each month. The lease agreement contained a provision that the Government could renew the lease from year to year thereafter by notice in writing and also contained the following option to purchase:

On June 30, 1943, the lease then being in full force by renewal, an amendment thereof was made so as to provide that the term of the lease should continue through June 30, 1944, and that unless the Government should give thirty days written notice of termination before June 30th of each year thereafter, the lease would remain in force from year to year without further notice but in no event beyond June 30, 1953.

On June 27, 1947, the Veterans’ Administration sent a telegram to appellee reading as follows:

On July 9, 1947, the Veterans’ Administration wrote appellee a letter stating, in part:

In answer to the Government’s request to state its minimum price for the property, the…