Economic Rights

Question 1

Contracts Clause - Who does it apply to?

Answer 1

Applies only to state and local gov’t interfering/w performance of already existing contracts

Question 2

Contracts Clause - 3 Part Test

Answer 2

1. Is there a substantial impairment of the contractual relationship?
2. If yes, does it serve a significant & legitimate public purpose?
3. Is it reasonably related to achieving said purpose/goal?

Question 3

Takings Clause - 4 Part Analysis

Answer 3

1. Is it a taking?
   
   • Possessory: Physically confiscating/occupying land
   • Regulatory: Leg. is passed that affects right to usage
2. Is it private property?
3. Is it for public use?
   
   • If yes, gov’t must compensate
   • If no, gov’t can’t take at all
4. Just compensation?
   
   • As measured by loss to owner