Ambayec, Mounicha C.

RFBT 3
BSA-1 Block 12 Atty. Dente

Activity 1: How do you determine a valid and perfected contract of sale?

We can determine a valid and perfected contract of sale through assessing if all
essential elements of a contract of sale are present namely 1) consent or meeting of
minds, 2) object or the subject matter and 3) cause or consideration which refers to the
price certain in money or its equivalent. All these essential elements are necessary in
order to consider a contract of sale valid and perfected such that the absence of one
negates its existence or in other words, there is no contract of sale at all. To elaborate
effectively and identify the nature of each essential element, an in-depth discussion will
be done in the succeeding paragraphs.

First, a contract of sale is consensual in nature hence requiring consent to be

manifested by both parties: the seller and the buyer. For the seller/vendor, the consent
required is the consent to transfer and deliver the object of the contract whereas for the
buyer/vendee is the consent to pay for the same. Consent is manifested by the meeting
of the offer and the acceptance upon the object and the cause which are to constitute
the agreement hence there is no consent when the offer made by one party is not
accepted by the other.

Second, a determinate object or the subject matter is required in order to

consider a contract of sale valid and perfected. An object is considered to be
determinate when it is particularly designated and/or physically segregated from all
others of the same class. However, the fact that the quantity of the object is not
determinate shall not hinder the existence of a contract provided that it is possible to
determine the same without the need of a new contract between the two parties. Things
which are object of the contract such as personal or real property must also be lawful or
licit such that it is not contrary to law, morals, customs, public order, or public policy.
Other than things, the object of the contract may also be rights so long as they not
intransmissible and not personal.

Third and lastly, a cause or consideration which refers to the price certain in
money or its equivalent is also necessary in the formation of a valid and perfected
contract of sale. The price must be real and not fictitious or else the contract of sale is
considered void. More so, the fixing of the price can never be left to the decision of one
of the contracting parties. However, a fixed price by one of the contracting parties when
accepted by the other gives rise to a perfected contract of sale.
 Altogether, these three essential requisites or elements make up a valid and
perfected contract of sale. Therefore, any one of them is not enough to form such.