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The video tutorial discusses the importance of free consent in contracts. Free consent is defined as the willingness of parties to agree on the same thing in the same sense. It is considered an essential element in the formation of a valid contract. Without free consent, the agreement between parties can be void. Section 10 subsection 1 of the Contract Act states that all agreements are considered contracts if they have the free consent of parties. Consent is crucial in ensuring that parties genuinely agree on the terms of the contract.