February 5, 2010. To live within your means, you must know your net financial expenses. These are the monthly total of your fixed, variable and discretionary expenses. To calculate your net financial expenses, you need your total fixed monthly expenses and your average monthly variable expenses.
In sum, there are essentially six elements to a contract. For a contract to be considered valid, there must be an offer, acceptance by another party, an exchange of something of value or consideration, mutually agreed upon terms, both parties must be free of mental illness and the terms must not break any laws.
The law says to make a legally binding contract you need: 1  Agreement-an offer is made by one person and freely accepted by another. 2  Consideration-this means that you and each person entering the contract must promise to do something or give something of value (money, right or benefit) to each other. contract is a legally binding agreement between two or more people. A contract can also be made with a business. Some examples of contracts are: 1  buying goods. 2  buying a house. 3  hiring a tradesperson to do some work for you. 4  borrowing money. 5  signing up for a telephone plan.