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.
To sum it up: for a contract to be enforceable, six elements must be present: 1  An offer made by the promisor. 2  An acceptance of the offer by the promisee. 3  Consideration in the form of money or a promise to do or not do something. 4  Mutuality between parties to carry out the promises of the contract. 5  Capacity of both parties in mind and age.