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The Obligation of Contract Clause is a provision in the U.S. Constitution that prohibits states from passing any law impairing contractual agreements.  Article I, Section 10, clause 1 states, "No State shall ... pass any ... Law impairing the Obligation of Contracts ...."  Many states have similar protections in their own state constitutions.  For example, the Florida constitution states, "No [[bill of attainder]], [[ex post facto law]] or law imparing the obligation of contracts shall be passed."  Art. I, Section 10.

The Obligation of Contract Clause is a provision in the U.S. Constitution that prohibits states from passing any law impairing contractual agreements.  Article I, Section 10, clause 1 states, "No State shall ... pass any ... Law impairing the Obligation of Contracts ...."  Many states have similar protections in their own state constitutions.  For example, the Florida constitution states, "No [[bill of attainder]], [[ex post facto law]] or law imparing the obligation of contracts shall be passed."  Art. I, Section 10.

Founder James Madison wrote in The Federalist No. 44, "Bills of attainder, ex post facto laws, and laws imparing the obligation of contracts, are contrary to the first principles of the social compact, and to every principle of sound legislation."

Founder James Madison wrote in The Federalist No. 44, "Bills of attainder, ex post facto laws, and laws impairing the obligation of contracts, are contrary to the first principles of the social compact, and to every principle of sound legislation."

This clause prevents states from passing laws that interfere with existing contracts between private parties, or contracts between a private party and the state.  In two early Supreme Court decisions, Chief Justice John Marshall used this clause to invalidate state laws that interfered with prior grants by the state in ''Fletcher v. Peck'' (1810) and ''Trustees of Dartmouth College v. Woodward'' (1819).  These decisions held that a state could not abrogate (nullify)  its own prior contracts with private parties.

This clause prevents states from passing laws that interfere with existing contracts between private parties, or contracts between a private party and the state.  In two early Supreme Court decisions, Chief Justice John Marshall used this clause to invalidate state laws that interfered with prior grants by the state in ''Fletcher v. Peck'' (1810) and ''Trustees of Dartmouth College v. Woodward'' (1819).  These decisions held that a state could not abrogate (nullify)  its own prior contracts with private parties.