NICHOL T.

CORDERO
BSREM BATCH 3
Philippine Christian University

Activity No. 4

1. Essential Requisites of Contract

2. Contract of Sales

3. Elements of a sales contract

4. Difference between Contract to Sell and Contract of Sale.

5. Validity of Contracts

6. Extinguishment of Contract

1. Essential Requisites of Contract:

The essential requisites of a contract refer to the fundamental elements that must be present for a contract to be
legally binding. These requisites include:

Offer and Acceptance: There must be a clear and unequivocal offer from one party and a corresponding acceptance
by the other party.

Intention to Create Legal Relations: Both parties involved must intend to enter into a legally enforceable agreement.

Consideration: There must be an exchange of something of value (e.g., money, goods, services) between the parties.

Capacity: The parties must have the legal capacity to enter into a contract, which typically means they must be of
sound mind and of legal age.

Consent: The agreement must be entered into voluntarily, without any form of coercion, fraud, or misrepresentation.

Legality of Object: The purpose or object of the contract must be legal and not against public policy or prohibited by
law.

2. Contract of Sales:

A contract of sale is an agreement between a buyer and a seller for the transfer of ownership of goods or property in
exchange for a price. It is one of the most common types of contracts and is governed by the principles of contract
law and the specific laws and regulations related to sales transactions in a particular jurisdiction.

3. Elements of a Sales Contract:

The essential elements of a sales contract typically include:

Parties: The buyer (purchaser) and seller (vendor) involved in the transaction.

Goods/Property: A clear description of the goods or property being sold.

Price: The agreed-upon amount to be paid for the goods or property.

Payment Terms: The terms and conditions regarding the method, timing, and currency of payment.

Delivery: The details of how and when the goods or property will be delivered to the buyer.
Transfer of Ownership: The agreement on when ownership of the goods or property will pass from the seller to the
buyer.

4. Difference between Contract to Sell and Contract of Sale:

A contract to sell and a contract of sale are two different types of agreements:

Contract to Sell: It is an agreement where the seller promises to transfer ownership of the goods or property to the
buyer at a future date or upon the fulfillment of certain conditions. Until the transfer of ownership occurs, the seller
retains legal ownership.

Contract of Sale: It is an agreement where the seller immediately transfers ownership of the goods or property to the
buyer upon the agreement's execution. The buyer becomes the legal owner of the goods or property once the
contract is concluded.

The main distinction lies in the timing of the transfer of ownership.

5.Validity of Contracts:

The validity of a contract refers to its legal enforceability. For a contract to be valid, it must meet certain
requirements:

Consent: The parties must have freely and voluntarily agreed to the terms of the contract without any form of
coercion, fraud, or mistake.

Legal Capacity: The parties must have the legal capacity to enter into a contract, which typically means they must be
of sound mind and of legal age.

Legality: The purpose and object of the contract must be legal and not against public policy or prohibited by law.

Form: Some contracts may need to be in writing or fulfill certain formalities to be enforceable, as required by law.

Extinguishment of Contract:

The extinguishment of a contract refers to the ways in which a contract can come to an end or cease to have legal
effect. Common methods of extinguishing a contract include:

Performance: When both parties fulfill their obligations as specified in the contract, the contract is considered
extinguished.

Agreement: The parties may mutually agree to terminate the contract, usually through a separate agreement called a
"termination agreement."

Breach: If one party