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Question 5

2023 Bar · Mercantile Law · 1 sub-question

5. Singha Corporation (SC), a corporation organized and existing under Singapore laws, filed a complaint for a sum of money and damages against Muni Corporation (MC), a Philippine-incorporated company, before the Regional Trial Court (RTC) of Manila. SC alleged in its complaint that it was neither doing business nor licensed to do business in the Philippines and that it was suing MC on an isolated transaction involving a contract for design consultation and Page 3 of 7 drawing development. MC allegedly failed to pay the remaining 50% of the contract price despite repeated demands by SC. During trial, SC admitted filing a prior collection suit against another company in the RTC. Hence, MC filed a motion to dismiss the case on the ground that contrary to its allegation, SC was in fact doing business in the Philippines without a license and thus had no legal capacity to sue. Will the motion of MC prosper? Explain.

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