Kelly

Plaintiffs were the sole officers and shareholders of Krim Construction Company (hereinafter “Krim”). To finance a student housing project in Isla Vista, California, Krim entered into a “take-out” agreement with United. This written agreement provided that, upon certain conditions to be met by Krim, United would loan Krim $950,000 by April 18, 1964. On November 25, 1964, United extended its commitment until November 30, 1965. The loans were not made and plaintiffs claim damages in the amount of $28,500—being the amounts paid by Krim to induce the making of the “take-out” contracts and its extension.

On October 1, 1965, a proceeding by Krim for corporate reorganization under Chapter X of the Bankruptcy Act was initiated. The petition was thereafter approved by the federal district court. 1 On June 5, 1968, *688 Krim was ordered to be adjudicated a bankrupt. On February 27, 1970, the trustee in bankruptcy assigned Krim’s alleged claim to appellants. Suit was brought on this claim on April 8, 1970. After extended oral argument, the court held that appellants’ claim was barred by the four-year statute of limitations on written contracts in California. (Code Civ. Proc., §…