What are the essential elements required for the formation of a valid contract? Provide examples to illustrate each element.

In order for a contract to be legally valid and enforceable, certain essential elements must be present. These elements collectively create the foundation for a valid contract, ensuring that there is a meeting of the minds between the parties involved. The essential elements of a valid contract include:

1. Offer: An offer is a clear and definite expression of willingness to enter into a contract. It must contain specific terms, such as the subject matter of the contract, price, quantity, and any other relevant details. For example, if John offers to sell his car to Sarah for $10,000, it constitutes a clear offer.
2. Acceptance: Acceptance is the unequivocal agreement to the terms of the offer. It must be communicated to the offeror in the manner specified or implied by the offer. Acceptance creates a binding contract between the parties. For instance, if Sarah agrees to purchase John's car for $10,000 and communicates her acceptance to him, it constitutes valid acceptance.
3. Consideration: Consideration refers to something of value that is exchanged between the parties. It can be in the form of money, goods, services, or a promise to do or refrain from doing something. Consideration demonstrates that each party is giving something up or obtaining a benefit as a result of the contract. For example, if Sarah pays $10,000 to John in exchange for his car, the consideration is the payment of money.
4. Legal Capacity: Each party entering into a contract must have legal capacity, meaning they must be of legal age and mentally competent. Minors and individuals with mental incapacity may lack the legal capacity to enter into a contract. However, certain contracts, such as contracts for necessaries, may be enforceable against minors. Contracts made under duress or undue influence may also be deemed voidable due to the lack of genuine consent.
5. Genuine Consent: Consent refers to the voluntary and genuine agreement of the parties to enter into the contract. It should not be obtained through fraud, misrepresentation, duress, or undue influence. If any of these factors are present, the contract may be voidable at the option of the aggrieved party.
6. Legal Purpose: The contract's objective must be legal and not against public policy. Contracts involving illegal activities or those that violate public policy, such as contracts for the sale of illegal drugs, are not enforceable.

It is important to note that the requirements for a valid contract may vary slightly depending on the jurisdiction and the specific circumstances. However, these essential elements generally form the basis of contract law and are necessary for the formation of a valid and enforceable contract.