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.
There are three more elements of a contract that are specific to making the contract legal, like mutuality, capacity and legally acceptable terms. Acceptance, in detail, happens when an offeree agrees to be mutually bound to the terms of a contract. It can be a written acceptance, like a contract for real estate or through a purchase order.