A sequential circuit consists of combinational logic, a feedback path, and memory elements. The memory element remembers values and can change values based on inputs. It also has a clock input that provides timing for state changes. The feedback path allows the circuit to have memory, with state changes controlled by the clock. Common memory elements include latches and flip-flops. The SR latch is a basic memory element built from two cross-coupled NOR or NAND gates with set (S) and reset (R) inputs that control the output states.