21. Contracts Clause (Article 1, Section 10)

Question 1

What is required for Contracts Clause (Article I, Section 10) to be applied?

Answer 1

1) State statute (NOT Federal)

2) Retroactively impairs ‘existing’ contract
- Contract must predate statute

3) Must pass scrutiny standard
- Public contract + State is party (statute reduces burden on State) => Strict scrutiny
- Public/Private contract => Intermediate scrutiny