Form of contract of sale

*In general, a contract may be entered into any form as long as the requisites for its validity
are present. The form of contract means the manner in which it is executed or manifested

*If a contract of sale is covered by Statute of Frauds, it must be in writing, otherwise the
contract cannot be enforced. Where the Statute requires that the sale must be in a certain form
for it to be valid, the required formed must be followed for the contract be valid and
enforceable.

Under the Statute of Frauds, the following cases must be in writing, for them to be
enforceable in court:

-Sale of personal property at a price not less than P500.00

-Sale of real property or an interest therein regardless of the nature of the property and the
price involved

-Sale of property not to be performed within a year from the date thereof regardless of the
nature of the property and the price involved

In certain cases, a certain form like public instrument is required for the convenience of the
parties in order that the sale may be registered in the Registry of Deeds to make effective as
against third persons the right acquired under such sale. Although, the parties are not allowed
by law to compel each other to execute the contract of sale observing that form.

For the sale of real property to be effective against third persons, the sale must be registered
in the Registry of Deeds of the province or city where the property is located. The sale must
be in public instrument or document, otherwise the registration will be refused. The sale of
land in a private instrument is valid as between the parties but it cannot be registered to bind
or affect third persons.

If the contract of sale is in a private writing, then it is valid and binding but only as between
the parties and not as against third persons without notice until the sale is registered in the
Registry of Property.