Forbes – by George Leef
In the first century or so of our national existence, one of the Constitution’s provisions that was most often at issue was the Contract Clause. But following New Deal era decisions that eviscerated it, hardly any cases have since centered on it. The clause has been so forgotten that few Americans even know it’s there, in Article I, Section 10, reading, “No state shall pass any law impairing the obligation of contracts.”
The Constitution’s drafters had good reason to include that language, meant to assure people that contracts would be inviolate. During the years under the Articles of Confederation, the states frequently undermined the confidence in contracts by enacting debt relief laws and revoking business charters. The first state law to be declared invalid by a federal court was a Rhode Island statute that let a politically connected state businessman out of his debts. Unless contracts were reliable, the Founders knew, the new nation’s commercial development would itself be impaired. Continue reading “The Supreme Court Will Soon Decide: Uphold The Contract Clause Or Let It Die?”
