Short answer. The moment the parties agree. Under Article 1475 a sale is perfected when there is a meeting of minds on the thing sold and the price — even before anything is delivered or paid. From that instant the contract binds, and either party may demand that the other perform, subject to any form the law requires.

What the law says

The contract of sale is perfected at the moment there is a meeting of minds upon the thing which is the object of the contract and upon the price.

Civil Code, Article 1475 — Perfection of the Sale. Read the full provision →

What the law says

From that moment, the parties may reciprocally demand performance

Civil Code, Article 1475 — Perfection of the Sale. Read the full provision →

A sale is born from consent, not delivery

People often assume a sale happens only when goods change hands or money is paid, but the Civil Code sets the decisive moment earlier. Article 1475 provides that the contract of sale is perfected at the moment there is a meeting of minds upon the thing which is the object of the contract and upon the price. Two things must be agreed: what is being sold, and for how much. Once buyer and seller have genuinely agreed on both, the sale exists as a binding contract, regardless of whether the item has yet been handed over or the price has actually been paid.

From perfection, each side can demand performance

Perfection has real consequences. The article continues that from that moment, the parties may reciprocally demand performance. The buyer can insist that the seller deliver; the seller can insist that the buyer pay. Neither can simply walk away on the theory that nothing has happened yet, because the meeting of minds has already created enforceable obligations on both sides. If one party refuses, the other has a claim for performance, or for the remedies the law gives an injured party to a perfected contract, including damages.

Perfection, form, and the stages of a sale

Perfection is one of three stages of a sale — negotiation, perfection, and consummation, which is the actual delivery and payment. Article 1475 marks the middle stage, and it adds that the power to demand performance is subject to the provisions of the law governing the form of contracts. For certain sales, a particular form may be needed to enforce or prove the agreement. But as a general rule, it is agreement on the thing and the price — not delivery or payment — that turns mere negotiations into a binding contract of sale.

Cases citing this provision

These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.

Note. Statute text quoted on this page is reproduced from the official enactment and is linked to the full provision. The explanation around it is general legal information from Vivas & Nobles Law Office, not legal advice. Whether it applies to your situation depends on facts only a lawyer reviewing them can assess.