Ramey

This is an action to rescind a contract for the purchase of a certain motel and trailer park because of alleged fraudulent representations and concealment of material facts, failure of consideration and mistake. The *156 trial court found for the defendant seller, and the plaintiffs have appealed.

It appears from the record that the property in question, known as the Traveler’s Rest Motel and situated on the outskirts of Willows, California, was purchased by defendant at a foreclosure sale about 11 weeks before the execution of the contract of sale to the plaintiffs. Following the purchase by the defendant of said property, she opened same as a trailer park and motel without a state permit as required by section 18200 of the Health and Safety Code. However, on or about November 21, 1956, she applied for a permit, and in response to her application the Division of Housing, under date of December 5, 1956, mailed her a compliance order in the form of the following letter:

Immediately after receipt of this letter defendant was contacted in person by Mr. Davis of the Division of Housing and told by him that he had not ordered the letter to be sent, and that he thought perhaps Mr.…