CONTRACTS CLAUSE

glossary /

CONTRACTS CLAUSE

Contracts Clause. The clause of the U.S. Constitution prohibiting states from passing a law that would impair private contractual obligations. ? The Supreme Court has generally interpreted this clause so that states can regulate private contractual obligations if the regulation is reasonable and necessary to serve an important public purpose. U.S. Const. art. I, ¡ì 10, cl.

1. ¡ª Also termed Contract Clause; Obligation of Contracts Clause. [Cases: Constitutional Law 113¨C185. C.J.S. Constitutional Law ¡ì¡ì 277¨C389.]

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