Cook

Respondents were the owners of a house and lot and a bakery business in Coalinga, California, which was their community property. On or about November 7, 1928, they entered into a verbal contract with appellants whereby respondents agreed to sell and appellants agreed to buy the property upon the following terms: Payment to respondents of $1,000 cash and the payment of a bill of $160 owed by respondents to W. D. Bennett, these sums equaling respondents’ equity in the house and lot; assumption and payment of an encumbrance on the house and lot; assumption and payment of all debts of the bakery business amounting to about $1250; payment of a $500 note and interest thereon to a Coalinga bank upon which C. F. Cook was one of two makers. The sales contract was divided into two parts; the $1,000, together with the payment of the Bennett bill and the encumbrance was to be payment in full for the real estate. The assumption and payment of the other obligations was to be payment for the bakery business. C. F. Cook, but not his wife, executed a deed to the real property to appellants and delivered possession to them on November 7, 1928.

Respondents instituted this action to cancel the deed…