How

Plaintiff and appellant Mercantile Investment Company, a corporation, brought this action to quiet title to a tract of land situate. in the town of “Hollydale, ” Los Angeles County. An answer was filed by the defendants and respondents T. J. V. How and Mary E. How, his wife, in which they alleged that they had an interest in said real property consisting of a lien thereon for the sum of $1163.60, which sum they had paid to appellant on account of the purchase price of said property. The answer further alleged that the contract theretofore entered, into between respondents and appellant had .been rescinded by respondents on the ground of fraud.

Respondents also filed a cross-complaint in which they alleged that on March 5, 1924, appellant, through its agents, H. H. Townsend & Company, made a contract in writing with respondents to sell, and respondents had agreed to purchase, the real property in question for $6,500; that prior to the making of said contract, appellant, through its said agents, made certain false and fraudulent representations to them for the purpose of inducing them to purchase said property, and said false representations did induce them to enter into the…