1. Consent – this is the meeting of the minds of both parties, i.e., consent to transfer ownership in exchange for the price.
2. Subject Matter – this should be determinate. A thing is considered determinate if when it is particularly designated or physically segregated from all others of the same class. Generally, there is no sale of generic thing. If the parties cannot agree as to the subject matter, there is no meeting of the minds.
NOTE: The thing subject of sale needs not to be determinate at the time the contract of sale is entered into. What is required is that it should be capable of being determinate without the necessity of a new agreement or further agreement between the parties.
3. Price – It should be certain in money or its equivalent. This is the cause or consideration. Note that the price need not be in money.