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Facts: Eduardo Santos, an individual resident of Iloilo City, sues Marsan Builders, Inc., a corporation with its principal office in Cebu City, for breach of a construction contract. The contract was signed in Manila, provides that performance is to be performed in Davao City, and contains a forum-selection clause stating that any disputes arising out of the contract must be brought exclusively in Cebu City. The action was filed in the Regional Trial Court, Manila. Marsan Builders moves to dismiss on the ground of improper venue. (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.