Notes: Stages in the Life of Contracts1. Preparation or negotiation - the stage when bargains are usually made. This includes offer and counter-offer.2. Perfection or birth - the stage when the parties come to a definite agreement.Three (3) ways on how contracts are perfected:? Consensual - the contract comes into existence upon the perfection by mutual consent even if the subject matter or the consideration has not been delivered.? Real - the contract is perfected not merely by mutual consent but by the delivery, actual or constructive, of the object of the obligation.? Solemn - the contract is perfected upon the execution of the form required by law.3. Consummation or termination - the stage when the parties have performed their respectiveobligations and the contract may be said to have been fully accomplished or executed.Unauthorized Contracts? A person is not bound by the contract of another of which s/he has no knowledge or to which s/he has not given any consent. Therefore, a contract entered into in the name of another by one who has no authority is unenforceable against the former unless ratified by him/her before it is revoked by the other contracting party.? The third person cannot demand or be made to fulfill his/her supposed obligation.? Lapse of time cannot remedy such unauthorized contract except insofar as it has been subsequently ratified by the person in whose name the contract was entered into or by his/her duly authorized representative.

Answer the following question: 1. Differentiate stipulation pour autrui from unauthorized contracts. 2. Explain how contracts are perfected. 3. Explain how a person can be bound by a contract entered into by another. 4. Briefly discuss the stage of contractl