The Contract Clause - Explained

The video explains Article One, Section 9 of the Constitution, focusing on the contract clause, which prevents states from passing laws that impair contract obligations. It clarifies that this clause is directed at states, not the federal government. The video discusses how states can legislate broadly without violating the clause, but targeted legislation that interferes with specific contract rights is prohibited. Exceptions exist if there is a compelling justification.

What does Article One, Section 9 of the Constitution primarily restrict?

• Corporations from forming agreements

• Individuals from entering contracts

• States from impairing contract obligations

• Federal government from passing laws

Which entity is primarily targeted by the contract clause?

• International bodies

• Local municipalities

• State governments

• Federal government

What type of legislation does not violate the contract clause?

• Legislation that benefits a single party

• Laws that nullify existing contracts

• Specific legislation targeting individual contracts

• General legislation affecting all contracts

What is the contract clause meant to prevent?

• Individuals from modifying contracts

• States from creating new contracts

• States from usurping individual contract rights

• Federal government from interfering with state laws

Under what condition might specific legislation be justified despite the contract clause?

• If it is approved by a majority vote

• If it targets international contracts

• If it has a compelling justification

• If it benefits the federal government