Paularena V. Superior Court Of San Diego County

The petitioners were the purchasers of homes under land sales contracts. In July 1962 they filed a complaint in the respondent court alleging causes of action for damages sustained in connection with such purchases on account of the violation of statutory duties, negligence, breach of warranty, fraud and rescission. In the cause of action based on rescission petitioners alleged that, pursuant to the terms of their contracts, they had conferred benefits upon the defendants in the action and offered "to restore on their part all consideration heretofore received from defendants, pursuant to sections 1691 through 1693 of the California Civil Code, on condition that defendants restore to plaintiffs the value of the benefits conferred upon defendants by plaintiffs, . . ."*fn1 In response to these allegations the defendants caused a letter to be written to the plaintiffs in which, among other things, they declared: