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Question

II. JURISDICTION: G. Jurisdiction vs. Exercise of Jurisdiction

In a civil case filed before the Regional Trial Court (RTC) of Pasig City, the parties involved are a corporation incorporated in the Philippines and a foreign individual who is a non-resident. The plaintiff, the corporation, is seeking to enforce a contract entered into between both parties.

While the defendant, the foreign individual, argues that the RTC of Pasig City does not have jurisdiction over the case, the plaintiff maintains that the court can exercise jurisdiction based on the following grounds:

1. The subject matter of the case involves the enforcement of a contract.
2. The defendant, although a non-resident, has voluntarily submitted to the jurisdiction of the court by participating in the contract negotiations and signing the contract in the Philippines.
3. The contract contains a clause giving the RTC of Pasig City exclusive jurisdiction over any disputes arising from the contract.

Discuss the concept of jurisdiction and the distinction between jurisdiction and the exercise of jurisdiction. Based on the given scenario, state whether the RTC of Pasig City has jurisdiction over the case, and provide a legal basis for your answer.

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Answer