On December 15, 1989, Triumph Tours participated in the bidding of Hotel continental and it won.

Triumph Tours proposed the following terms. 1. Lease rental per months of P 200,000 2. Construction of an additional wing with 100 rooms and a banquet hall, subject to availability of funds The following day, Mr. Oscar Mendoza, the owner-manager, signed lease contact which includes, among others, the following conditions: 1) The LEESEE shall pay the LESSOR the monthly rental of the leased premises and facilities within the first 10 days of the month and the equivalent of three months rental as deposit; 2) The LESSEE shall issue monthly post-dated checks in favour of the LESSOR equal to one year rental every January 1st during the lease period. 3) The LESSEE shall respect the existing contracts between the LESSOR and the concessionaries who leased a portion of the premises until December 31, 1989. The concessionaries shall continue to pay their rentals to the LESSOR. After December 31, 1989, the LEESSEE shall assume the responsibility for the renewal of the contract/negotiation of contract with concessionaires and shall be entitled to receive the rentals thereof. All these concessionaries shall be subject to the prior approval of the LESSOR. 4) The LEESEE cannot alter the present structure of the leased premises nor introduce permanent improvement without prior approval of the LESSOR. 5) Upon signing of the contract, the LEESSEE shall purchase all consumables owned by the LESSOR in the leased premises such as glassware, flatware, linen, etc, which should be paid in cash in the amount of P800, 000. 6) The LEESSE shall rehabilitate, repair and maintain the cooling tower as well as install back-up chiller to ensure continued air-conditioning of hotel facilities. 7) The LEESSEE shall refrain from using the premises for purposes that become the property of the LESSOR upon the extraordinary/termination of the contract. 8) The Lease Contract shall be for a period of five years, unless sooner terminated by reason of violation of the provision of the agreement subject to renewal for similar period upon such terms mutually agreed upon by the parties. 9) All permanent improvements introduced by the LEESSEE shall become the property of the LESSOR upon the expiration/termination of the contract. 10) The LEASE CONTRACT may be terminated by the LESSOR upon violation by the LEESSE of any terms of and conditions of the contract.

1. Time context a. Triumph Tours joined the bidding of Hotel Continental on December 15, 1989 and it won. The following day, December 16, 1989, Mr Oscar Mendoza, signed the lease contract.

2. Viewpoints a. As the new owner-manager, Mr Oscar Mendoza, 3. Statement of Objectives 4. Statement of the Problem 5. Area of Consideration

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