Cavalli

The appellants and the respondents, who had been friends for 30 years, have come to court by an action for declaratory relief to decide which is entitled to certain on-sale and off-sale liquor licenses. These licenses were originally issued to the Cavallis for use at a little place at La Honda, called “Cavalli’s Inn.” In the latter part of 1945, on proper application for transfer to the Alcoholic Beverage Control Board, these licenses were then issued to the Macaires for use at the same place as before. They have been renewed annually since then; and they still remain in the name of the appellants.

In compliance with a written agreement of November 23, 1945, so to do, the respondents sold to the appellants all the furniture, furnishings and liquor inventory of Cavalli’s Inn for $3,000; and then on December 1,1945, executed a five-year lease of the premises in favor of the appellant purchasers. That lease among other things contained this provision:

A second provision of the lease which is the same as paragraph 13 of the November agreement of sale is as follows:

There was no option provision for renewal or extension of the term in the 1945 lease. Five years later, the same…