Kenner

The plaintiff brought the action to cancel, on the ground of fraud and misrepresentation, a contract to purchase from the defendants a leasehold- interest and the furniture and fixtures of a certain hotel business. The plaintiff had judgment from which the defendants have appealed.

The defendants Esther Smith and Chester E. Smith were the owners of a leasehold interest in the Rialto Hotel in Sacramento, for which the plaintiff agreed to pay the sum of $5,000, payable by applying $500 thereof as a credit on a previous indebtedness, and the balance by the plaintiff’s note for $4,500 secured by a deed of trust on real property in Solano County. The plaintiff alleged and the evidence is that the defendants represented to her that the net income from the hotel, while it was being operated by the defendants, was between $250 and $300 per month, but that the business could be increased if the plaintiff would make some needed repairs, and refurnish and redecorate to the extent of about $2,750.

The plaintiff took possession pursuant to the consummated transfer and immediately carried out the plan to make the repairs and to refinish and refurnish the rooms, without closing the hotel…