Offer and Acceptance: In order to create a valid contract, there must be a

'lawful offer' by one party and 'lawful acceptance' of the same by the other party.
E.g: Person A approaches Person B and states, Id like to rent your 300 acres to
plant corn and I will pay 40% of the input costs and receive 40% of the
profits. Person B agrees to Person As terms.
In this Example, the Person A makes the offer and Person B accepts the offer.
Consideration: Consideration means 'something in return'. In every legal
contract, there must be something in return. An agreement is legally capable to
be enforced only when each of the parties to it gives something and gets
something. The consideration should not be unlawful, illegal, immoral or
opposed to public policy.
E.g: John backed into Allens car, damaging it. John is liable to pay for the
damages, but does not have the money right now. While Allen could sue John
for the damages to his car, he enters into an agreement with John to give him 90
days to pay the full amount of $1,500, plus an additional $250 for the
inconvenience. The agreement states that Allen will not file a lawsuit before the
90 days is up, but is free to do so after that time. This agreement, or contract,
provides consideration for both parties:

Johns benefit: Allen gives up the right to sue for a period of 90 days

Allens benefit: John will pay for the damages, plus an additional amount
of $250

Free Consent: All the parties must have agreed upon the subject matter of the
agreement in the same sense. Section 14 says that if the agreement is induced by
coercion, fraud misinterpretation or mistake, it is said to be "no free consent"
and such a contract is voidable and cannot be enforceable by law.
E.g: A ad two cars, one is of green colours and the other one is white. A offered
to sell his green car to B for Rs.50,000. B Accepting the offer believing it to be
for the white one. In this case, no contract arises between A and B as there is no
real consent of the parties.