Davis

On June 5, 1939, appellant entered into an agreement with appellees for the sale to the latter of certain land in Tehama County, California, for the sum of $4,000. Upon the execution of the agreement appellees paid $350 on the purchase price, but have paid nothing further. Under the terms of the contract they were bound to make an additional payment of $450 within 60 days, the balance, together with interest, to be paid in semiannual installments beginning July 1, 1940, and extending over a period of 20 years, deed to be given upon performance of the stipulated conditions and completion of the payments. Time was made of the essence of the agreement; and in the event of default the vendor reserved the option either of enforcing immediate payment of the balance of the purchase price, or of forfeiting all the buyers’ rights under the agreement. In the latter event payments already made were subject to retention as liquidated damages.

Appellees went- into possession of the land on the execution of the agreement. On June 30, 1941, they being then in default in respect of the payment of all matured installments, including interest and certain advances for taxes and insurance, appellant…