Contracts Clause

Question 1

Article I, Section 10

Answer 1

Prohibits the states from passing any law “impairing the obligation of contracts.”

Does not apply to the federal government

Question 2

What kind of contracts does the clause apply to?

Answer 2

Only existing contracts, does not apply to contracts not yet entered into.

Question 3

Must show

Answer 3

Existing contract

Substantial impairment

Important government purpose done so in a

Reasonable and important manner

Question 4

Deference

Answer 4

Great deference to the state unless the state is impairing their own obligations (relieving themselves of their own obligations)