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Contracts Keyed to Fuller
La Cumbre Golf and Country Club v. Santa Barbara Hotel Co.
Citation:
205 Cal. 422, 271 P. 476 (1928)Facts
In 1920, La Cumbre Golf and Country Club entered into a contract with Santa Barbara Hotel Company to provide golf privileges to guests of The Ambassador Hotel through December 31, 1923. The Hotel Company agreed to pay $300 monthly for these privileges. The contract allowed hotel guests to use the golf facilities and sign for charges, which would be billed to the hotel. On April 13, 1921, The Ambassador Hotel was completely destroyed by fire through no fault of the defendant. Following the fire, the Hotel Company had no guests who could use the golf privileges, did not rebuild the hotel, and eventually sold the property. The Golf Club sued to recover the monthly payments that would have been due under the contract after the hotel’s destruction, arguing that the Hotel Company remained obligated to pay regardless of whether it had guests who could use the privileges.
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