Stages of a contract

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.