Article 1458. c.

Remuneratory
By the contract of sale one of the The cause is the service or benefit
contracting parties obligates himself to transfer remunerated
the ownership and to deliver a determinate 3. According to importance or dependence
thing, and the other to pay therefor a price of one upon another
certain in money or its equivalent. a. Principal
A contract of sale may be absolute or Can stand by itself
conditional. b. Accessory
Existence depends upon another
CHARACTERISTICS OF A CONTRACT OF SALE contract
1. Consensual c. Preparatory
Perfected by mere consent of the parties Serves as a means by which other
2. Principal contracts may be entered into
Can exist by itself without being dependent 4. According to name or designation
upon another contract a. Nominate
3. Bilateral Have a name under the law
Parties are bound by reciprocal obligations b. Innominate
4. Onerous Without any name under the law
Valuable considerations are given by both  Do ut des (I give that you may give)
parties to acquire rights  Do ut facias (I give that you may do)
5. Commutative  Facio ut des (I do that you may give)
Parties exchange almost equivalent values  Facio ut facias (I do that you may
 except in the case of aleatory contract do)
such as the sale of hope 5. According to risk or fulfillment
6. Nominate a. Commutative
Has a special name given to it by law
Where the parties give equivalent
 wherein the Civil Code gives special
values; hence, there is real fulfillment
designation to such contract in 'Title VI:
Sales' b. Aleatory
Fulfillment depends upon chance
CLASSIFICATIONS OF CONTRACTS 6. According to the parties obligated
1. According to perfection or formation a. Unilateral
a. Consensual Only one of the parties is obligated to
Perfected by mere consent give or do something
b. Real b. Bilateral
Perfected by the delivery of the object Both parties are required to give or do
of the contract something
c. Formal or solemn 7. According to subject matter
Must be in the form provided by law for
a. Involving things
their perfection
b. Involving rights or credits
2. According to cause
c. Involving services
a. Onerous
There is an exchange of valuable 8. According to the time of fulfillment
considerations. For each contracting a. Executed
party, the cause is the prestation or the b. Executory
promise of a thing or service by the 9. Others
other. a. Auto-contract
b. Gratuitous or lucrative Only one person represents the 2
Those where one party receives no opposite parties to the contract
equivalent consideration. b. Contract of adhesion
Referred to as contracts of pure Only one party drafted the contract
beneficence, the cause of which is the
liberality of the benefactor.
EARNEST MONEY
Money given as part of the purchase price
and as a proof of the perfection of the
contract.
- Arras (something of value to show that the
buyer was really in earnest, and given to
the seller to bind the bargain)
OPTION MONEY
Consideration paid for the purpose of holding
one to his promise to buy or sell a determinate
thing for a certain period of time, which
consideration is separate and distinct from the
purchase price.
- Not always monetary, consideration must
be clearly specified as such in the option
contract of clause

EARNEST MONEY VS OPTION MONEY

1. Earnest money – part of the purchase price,
Option money – separate and distinct from
the purchase price
2. Earnest money is paid upon the perfection
of a contract of sale, while option money is
paid for a sale yet to be perfected.