Contracts Clause Flashcards
1
Q
Contracts Clause Rule
A
Generally, a state or local government may not substantially impair the obligations under private contracts unless it serves a legitimate and important state interest and is reasonable and narrowly tailored to promote that interests.
If it is a public contract, and either the authorizing statute or the contract itself reserves the right to amend, revoke, or modify the contract, there is no substantial impairment, and a state cannot be obligated to refrain from exercising its police power.
