Smith v. Butler

This is an action by the plaintiffs to declare a trust and to compel the defendant to restore plaintiffs to their rights under a conditional sales contract for the purchase of real estate. In the month of April, 1920, plaintiffs and. defendant entered into a contract for the purchase and sale of certain re'al property in the town of Ontario, county of San Bernardino. Under the terms of the contract plaintiffs made an initial payment of $1,350 and subsequently made two semi-annual payments of $881 each, together with interest as prescribed by the contract. The total purchase price of the property was fixed at $12,000. The third payment of $881 and interest was about to become due in October, 1921, when the plaintiffs informed the defendant that they would be unable to' make said payment on account of financial difficulties and requested an extension of time. It is plaintiffs’ contention that the defendant then proposed that if the plaintiffs would execute a quitclaim deed to the premises, assign their contract of purchase and would within six months pay to the defendant the October payment of $881, together with an additional one per cent interest thereon, and pay rental for the…