Reton v. J. D. Millar Realty Co.

TUTTLE, J.,

pro

tem.

Appellant appeals from a judgment rescinding a contract for the sale of real property, and providing for the reimbursement of the plaintiff in said action in the sum of $1874.05.

On May 29, 1926, plaintiff entered into a contract with appellant for the purchase of a lot in the City of Hermosa Beach. The purchase price was fixed at $6,000. Three hundred dollars was the initial payment, and a símila.r amount was to be paid on June 6, 1926, and on August 29, 1926. Thereafter $60 per month was to be paid, until the balance of the purchase price was discharged. Interest was

[710]

fixed at seven per cent and the buyer assumed the payment of all taxes and assessments.

Plaintiff paid all of the $300 payments upon the purchase price and in addition made expenditures for taxes and interest. The money judgment allowed her was the total of these items.

The alleged false representations upon which rescission was adjudged were as follows:

1. That the lot was of the market value of $6,000.

2. That immediately appellant would procure a lessee who would lease the lot for a rental sufficient to pay all payments under the contract.

3. That appellant would pay rental for the site of its tract office on the lot as long as it remained there, in an amount sufficient to pay all interest payable on the contract.

The trial court found that the value of the lot never was $6,000, and that it was not worth any amount in excess of $4,POO; that appellant did not, at the time the contract was entered into, intend to procure a lessee for said lot, and that said promise was made without the intention of performing the same,- that appellant did not, while its tract office was upon said lot, pay any interest upon the contract, and that its promise to pay for the use and occupancy of the lot for the purpose of a tract office was made without any intention of performing the same; that said representations were made fraudulently, for the purpose of inducing plaintiff to enter into said contract.