D. Defenses
While contract and promissory estoppel are considered distinct causes of action,27 the Restatement provides that a promise binding under principles of promissory estoppel is a contract.28 Defenses to a contract action therefore may be applicable. Some of the defenses in an action for breach of contract include the statute of limitations, minority, a contract in contravention of public policy, impossibility of performance, lack of contractual capacity,29 and duress.30
The South Carolina Supreme Court has held that the statute of limitations does not apply to actions in equity,31 and promissory estoppel is said to be "equitable in nature."32 The court has specifically held that "[t]he statute of limitations in S.C. Code Ann. § 15-3-530 does not apply to a claim for promissory estoppel."33 Equitable causes of action may, however, be barred as untimely under the doctrine of laches,34 and the court has explicitly said that laches applies to claims for promissory estoppel.35
A minor may disaffirm a contract as a whole, but may not affirm beneficial terms and disavow burdensome ones.36
Courts will not enforce a contract that violates public policy, statutory law, or constitutional provisions.37 Thus, a contract which contravenes public policy is void and cannot be the basis of an action for breach.38 Similarly, courts will not enforce an illegal transaction, although an independent contract, not forbidden by law is enforceable despite the fact it is connected to proceeds of an illegal transaction.39
A party to a contract is excused from performance which is rendered impossible by an act of God, the law, or by a third party. The party claiming impossibility bears the burden of proving it as a defense, and impossibility must be real, not mere inconvenience.40
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Notes:
[27] Duke Power Co. v. South Carolina Public Service Commission, 284 S.C. 81, 326 S.E.2d 395, 406 (1985). See also Link v. School District of Pickens County, 302 S.C. 1, 393 S.E.2d 176 (1990).
[28] Restatement (Second) of Contracts § 90 comment d (1979).
[29] "Contractual capacity is generally defined as a person's ability to understand in a meaningful way, at the time the contract is executed, the nature, scope and effect of the contract." Gaddy v. Douglass, 359 S.C. 329, 345, 597 S.E.2d 12, 20 (Ct. App. 2004). In Gaddy the court found that dementia rendered an individual incompetent to execute a binding durable power of attorney. The court cautioned that it in no way suggested...
