Nathan

Plaintiffs entered into possession of lands in Mendocino County under a lease from the defendants for a. period of five years from May 16, 1922. The rent reserved by the lease was the sum of $40 per month, beginning June 1, 1922', and payable on the first day of each month thereafter, except that on October 1st of each year the sum of $800 was payable. The lessees made the monthly payments of rental up to the first October payment. In the month of September a large stock of hay belonging to them was burned and they received $432 insurance thereon, which was paid by them to the defendants on account of the $800 October installment. The defendants Locke and Mason live outside of Mendocino County, and their co-owner and lessor Mrs. Nathan resided in that county and received all payments and transacted all business connected with the leased premises. At the time of the payment of the insurance money the plaintiffs notified Mrs. Nathan that they would not be able to pay the balance of the October installment and offered to give her a note for it. After some negotiations between the parties, a note was given and accepted by defendants payable twelve months after date, with the agreement…