There are many legal defenses available to the contract formation, there are three different ways in which a contract can be set aside, the contract can be said void, voidable and unenforceable. A contract is void when it never came into existence. Voidable means that one of the parties can set aside the contract, unenforceable contract means none of the parties can set aside the contract, they can take the contract back only by the recession. The legal defenses are:
a) Misrepresentation. False statement of fact made by one party to another and making a contract based on that.
b) Mistake of fact. A mistake is an incorrect understanding by one or more parties to a contract. There are three different types of mistakes in a contract: unilateral mistake, mutual mistake, and common mistake
c) Lack of consideration
d) Duress
e) Estoppel
f) Undue influence
g) Change in circumstances
h) Incapacity
i) Illegality of the contract