This involves preliminary negotiations and bargaining, discussions of terms and conditions, with no arrival yet of a definite agreement.

This is the point when there is a meeting of minds between the parties on a definite subject matter and valid a cause.

This occurs when the parties fulfill or perform the terms agreed upon in the contract, culminating in the extinguishment thereof.

The contracting parties are free to establish such stipulations, clauses, terms or conditions as they may deem convenient, provided they are not contrary to law, morals, good customs, public or private policy.

It shall have the force of law between the contracting parties and should be complied with in good faith.

The contract must bind both contracting parties; its validity or compliance cannot be left to the will of one of them.

Contracts take effect only between the parties, their assigns, and heirs, except where the rights and obligations are not transmissible by law, stipulation, or nature.

Contracts are perfected by mere consent (Art. 1315).

A stipulation in favor of a third person conferring a clear and deliberate favor upon him.

Those that are perfected by mere consent (such as sale and lease).

Those that are perfected by the delivery of the object of the contracts (such as depositum, pledge, and commodatum).

Those which must be in the form provided by law for their perfection (such as the donation of an immovable which, together with the acceptance by the donee, must be in public instrument to be valid).

Contract is perfected from the moment the acceptance comes to the knowledge of the offeror.

A contract is perfected from the moment the acceptance is declared or made even if not made known to the offeror.

The principal is bound from the time the acceptance is communicated to the agent. When an agent makes an offer to a third person in behalf of the principal, and the third person accepts the same, by communicating the acceptance to the agent, the contract between the principal and the third person is deemed perfected.

A communication to the agent is not a communication to the principal.

These are invitations to make an offer, unless the contrary appears, and these are not definite offers.

These are merely invitations to make proposals, and the advertiser is not bound to accept the highest bidder unless the contrary appears.

The following instances render the offer ineffective, except:

The following are the essential elements of a contract, except:

The absence of one element renders the contract void. It is inexistent from the beginning.

It is the manifestation of the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract.

It is all the things that are not outside the commerce of men including future things, all the rights that are not transmissible, and all services that are not contrary to law, morals, good customs, public order or private policy.

It is the essential reason why a party enters into a contract.

The Following are persons incapable of giving consent, except: