Question

Mr. Santos, a resident of Cebu City, entered into a business contract with Ms. Reyes, a resident of Davao City. The contract stipulates that any disputes arising from the contract will be subject to the exclusive jurisdiction of the courts of Cebu City. However, a dispute arises between Mr. Santos and Ms. Reyes, and Ms. Reyes files a lawsuit in the Regional Trial Court of Davao City.

Given the scenario, answer the following questions:

1. Considering the provision of Article 17 of the Civil Code, should the court of Davao City dismiss the case on the ground of lack of jurisdiction in favor of the court in Cebu City? Explain your answer.
2. Discuss the concept of "forum non conveniens" and its application in Philippine jurisprudence.
3. Should the court in Davao City exercise its discretion to decline jurisdiction over the case based on the principle of forum non conveniens? Explain your answer.