Q: Explain The Contracts Clause.
The Contracts Clause
1. Definition – no state shall impair the obligations of contracts
2. Only applies to state/local interference with existing contracts
3. Two different tests (depending on type of K)
a. Private K’s – modified intermediate scrutiny
i. Substantial impairment
ii. Reasonably and narrowly tailored to an important and legitimate public purpose
b. Government K’s – strict scrutiny
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