Kenney

This is a proceeding for declaratory relief. Plaintiff had judgment and the defendant Los Feliz Investment Co., Ltd., appeals upon a typewritten transcript.

The controversy arises out of a transaction for the sale of oil properties located in the Santa Fe Springs district. On March 1, 1929, the Los Feliz Investment Company, Ltd., sold the property to C. G. Willis for the full sum of $1,000,000, $125,000 of which was paid at the time and a note, or contract, for the payment of the balance was executed, together with a- deed of trust wherein the Bank of America of California was named as trustee. At the time of this transaction the property was covered by an oil and gas lease to the Wilshire Oil Company whereby the lessor was to receive thirteen and two-thirds per cent of all oil and gas produced from the premises. The pertinent portions of what is termed a promissory note are as follows: “$875,000.00 Los Angeles, California March 1st 1929. In installments as herein stated, for value received, I promise to pay to Los Feliz Investment Co., a corporation, or order, at Los Angeles, California, the principal sum of Eight Hundred Seventy Five Thousand ($875,000.00) Dollars, with…