Navarra V.

PDB
527 SCRA 562
Facts: The Petitioner mortgage his roerties to the reson!ent" B#t s#$se%#ent&' (ai&e! to a'
his o$&igation. Th#s the reson!ent (orec&ose! his roerties.
The Petitioner then o((ere! the reson!ent to re#rchase the sai! roert'" )here the
reson!ent agrees on a con!ition.
B#t s#$se%#ent&' the etitioner (ai&e! to com&' *ith the con!ition" Th#s this etition *here the
etitioner a&&ege! that there *as a&rea!' a er(ecte! contract o( sa&e" Bet*een him an! the
reson!ent.

+ss#e: )hether or not the contract o( se&& *as er(ecte!.
,e&!: No" The co#rt he&! that the contract *as sti&& in the Negotiation stage.
+n genera&" contracts #n!ergo three !istinct stages" negotiation" er(ection" an! cons#mmation.
Negotiation $egins (rom the time o( the o((er an! en!s at their agreement" Per(ection ta-es
&ace *hen the arties agree #on the essentia& e&ements o( the contract. An! Cons#mmation
*hen the arties er(orm the terms agree! #on in the contract" c#&minating in the
e.ting#ishment thereo(.