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.
First, letâs look at the verbal agreement, or verbal contract. Understanding the Spoken Contract. One of the major misconceptions about a verbal contract is that it is the same thing as an oral contract. But really, even a written contract could be considered a âverbalâ contract because, well, it uses words. An oral contract, on the other hand, is a promise that has been plainly spoken and not written down.