It is well-established that a contract undergoes various stages that include its
negotiation or preparation, its perfection, and finally, its consummation.[1]
Negotiation covers the period
from the time the prospective
contracting parties
indicate interest in the contract to the
time the contract is concluded (perfected). The
perfection of the contract takes place upon the
concurrence of its essential elements. A contract which
is consensual as to perfection is so established upon a mere meeting
of minds, i.e., the concurrence of offer and acceptance, on the object and
on the cause or consideration. The
consummation stage begins when the parties
perform their respective
undertakings under the contract, culminating in its extinguishment.[2]
[1] Limketkai Sons Milling, Inc. v. CA et al., G.R. No. 118509, 250 SCRA 523,
535-536, December 1, 1995.
[2] Id.