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.
A contract is a legally binding agreement. Once an offer has been accepted, there is an agreement, but not necessarily a contract; and the element that converts any agreement into a true contract is âintention to create legal relationsâ.