BLR Reviewer (Prelims) Chapter 1: Nature and Form of Contract Contract of sale-is an agreement whereby thevendor obligates himself to deliver a determinatething to the vendee who on his part, binds himself to pay therefor a sum ofmoney or its equivalent. Determinatething-designatedorphysicallysegregated from others of the same class Stages of a contract of sale 1.Negotiation-It covers the period from thetimetheprospectivecontractingpartiesindicate interest in the contract to the timethe contract is perfected. 2.Perfection-Ittakesplaceupontheconcurrence of the essential elements of thesale, which is the meeting of the minds of theparties as to the object of the contract andupon the price(includes manner of payment) 3.Consummation -It begins when the partiesperform their respective undertakings underthecontractofsale,culminatingintheextinguishment thereof. Two kinds of a contract of sale 1.Absolute-There are no conditions attachedto the contract. 2.Conditional-Thereare certain conditionsattached in the contract. Characteristics of a contract of sale. (CBOCNP) ●Consensual-it is perfected by mere consentwithout any further act; ●Bilateral-both the contracting parties arebound to fulfill correlative obligations towardseach other —sellerto deliver and transferownership of the thing soldbuyerto pay theprice ●Onerous- the thing sold is conveyed inconsideration which is the price certain inmoney ●Commutative-Thethingofvalueisexchanged for equal value ●Nominate-itis given a special name ordesignation in the Civil Code, namely, “sale” ●Principal -it can stand on its own and doesnot depend for its existence and validity uponanother contract. Essential requisites of a contract of sale. ●Consent-Manifested by the meeting of theoffer and the acceptance upon the thing andthecausewhicharetoconstitutetheagreement. ●Object -This refers to the determinate thing which is the object of the contract. ●Price -This refers to the “price certain in money or its equivalent” Equivalent- check or a promissory note, which istheconsideration for the thing sold. It does notinclude goods or merchandise although they havetheir own value in money. The fixing of the price can never be left to thedecision of one of the contracting parties, But, apricefixedbyoneofthecontractingparties, ifaccepted by the other, gives rise to a perfected sale. It is not enough for the parties to agree onthe price of the property. The parties must alsoagree on themanner of paymentof the price. Thedisagreementonthemanner of the payment istantamount to a failure to agree on the price. The absence of any of the above essentialelementsnegatestheexistenceofaperfectedcontract of sale.