Sales have been defined as the transfer of a thing from one party to another.

Its concept is that there

is an agreement whereby one of the parties called as the seller or vendor, obligates himself to deliver
something to the another which is called the buyer or purchaser or vendee, who, on his part, binds
himself to pay therefore a sum of money or its equivalent.

I have learned that for contract of sale to commence, the three (3) essential requisites must be
present, namely: (1) Consent or Meeting of the Minds, (2) Object or Subject Matter; (3) Cause or
Consideration.

In consent or meeting of the minds, there must be consent on the part of the seller or vendor to
transfer ownership of, and deliver, a determinate thing, and the consent on the part of the buyer or
vendee to pay the price certain.

The object or subject matter refers to the determinate thing which is the object of the contract. It
may be in the present or future, must be licit and must be within the commerce of men. An
impossible thing cannot be a subject of a contract.

The cause or consideration refers to the “price certain in money or its equivalent”. The cost at which
something is obtained, or something which one ordinarily accepts voluntarily in exchange for
something else, or the consideration given for the purchase of a thing. The payment need not be in
money, so that there can be a sale where the thing given as token of payment has been “assessed and
evaluated and its price equivalent in terms of money has been determine”. The absence of any of the
3 essential elements negates the existence of a perfected contract of sale.

There are three (3) stages of contracts. First is Negotiation, second is perfection, and third is
consummation. In Negotiation, it covers the period from the time the prospective contracting parties
indicate interest in the contact to the time the contract is perfected. Perfection on the other hand
takes place upon the concurrence of the essential elements of the sale which are the meeting of the
minds of the parties as to the object of the contract and upon the price. While consummation begins
when the parties perform their respective undertakings under the contract of sale, culminating in the
extinguishment thereof.

There are two (2) kinds of Sale, Absolute Sale and Conditional Sale. Absolute Sale is not subject to
any condition. The title to the property passes to the purchaser upon delivery of the thing sold .
Ownership of the property sold passes upon actual or constructive delivery thereof. While in
Conditional Sale it contemplates a contingency. Where the contract us subject to certain conditions.
It is usually in the case of the vendee, the full payment of the agreed purchase price.

People commonly mistaken Contract to Sell from Contract of Sale. But in Contract to Sell, it is
Commonly entered into so as to protect the seller against a buyer who intends to buy a property in
installments by withholding ownership over the property until the buyer effects full payment
therefor. One relatable example of this buying of a parcel of lot for a certain square meters and
amount of money, but it is not paid fully. The payment is through installment form. If the agreed
total amount of sale has been paid, that is the time a Deed of Absolute Sale is executed. Contract of
Sale on the other hand is a thing which would have existed and been the subject of sale to some other
person even if the order had not been given. Example to this is a particular size and style which is
ordinarily manufactured but not available.