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.
Contrary to what most believe, an informal exchange of promises can still be binding and legally as valid as a written contract. A spoken contract is often called an âoral contract,â not a âverbal contract.â A verbal contract is simply a contract that uses words.