Explanation of Article 33
This article addresses the statement of the "stages of contract formation." A contract does not form suddenly; rather, it goes through several stages, which are:
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The first stage: the "negotiation" stage, which precedes the contracting phase, during which proposals are exchanged between the contracting parties. This stage does not obligate either party and does not result in any legal effect unless the contracting parties agree otherwise, such as agreeing to pay compensation in case of withdrawal from the contract.
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The second stage: the "offer and acceptance" stage, where the intention is expressed clearly and decisively, whether the expression is explicit or implicit, written or verbal, whether it occurs in the contract meeting or through a message, or via modern communication means, whether directed to a specific person or the public, and whether it is associated with a time period or not. Once the offer and acceptance are present, the contract is concluded, and its legal effects are established.
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The third stage: the "completion of the contract" stage, where the elements and conditions of the contract are fulfilled. Once these elements and conditions are met, the contract becomes complete, effective, and binding on the contracting parties.
It is worth noting that the system does not specify "preparation" as one of the stages of contract formation, which means that preparation is not considered a stage of contract formation but rather an activity that precedes negotiation.
The article emphasizes that a contract is not formed unless all its stages are completed. If any of these stages are missing, the contract is void and has no legal effect.
Related To
Article 33
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Offer and acceptance shall be expressed by any means indicating intent.
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Intent may be expressed verbally, in writing, by a discernible sign, or by exchange, and it may be expressed explicitly or implicitly, unless otherwise required by legal provisions, agreement, or the nature of the dealing.