Flashcards Studio

(a) State the governing definition of a contract and its essential elements under the Civil Code.
(b) In a barrio setting, Pedro posts a sign advertising: “Residential lot for sale. Price: ₱1,000,000. Buyer must deliver ₱1,000,000 cash and sign a deed before delivery.” Maria goes to Pedro, delivers ₱1,000,000 cash, and signs the deed receipt. Pedro refuses to transfer the title and later sells the lot to another buyer. Maria sues, claiming there was a contract. Decide:
(i) whether the sign constitutes an offer or an invitation to negotiate;
(ii) whether there was a meeting of minds and the essential elements to form a contract.
(c) If you hold that no contract exists, explain the reason and outline what the plaintiff could seek instead.