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A construction contract for a wastewater-treatment plant is signed in Manila between Delta Infra, Inc. (principal office in Cebu City) and Omega Builders, Inc. (principal office in Davao City), with the plant to be located in Iloilo City. The contract contains a forum-selection clause stating that any disputes arising from the contract shall be brought exclusively in Iloilo City. A breach occurs, and Omega files a civil action for breach of contract in the Regional Trial Court, Manila, Branch 12. (a) Identify the proper venue for this action under Rule 4 and explain why, naming the controlling basis and applying it to the facts. (b) If the action is filed in an improper venue, what remedy should the court apply and why, citing the governing rule.