What Agreements Does The Constitution Prohibit The States From Making

The same position may apply to efforts to limit remedies for breaches of existing contracts, as in the United States Trust Co. of New York in New Jersey. In this case, the Court refused to allow the states to remove borrowing contracts from loan contracts to prevent the diversion of cash for other purposes, without even offering alternative protection to lenders. The adoption of this approach, both for forward-looking amendments and for retrospective changes in contractual terms, allows for the consistent application of the contractual clause to all contracts and thus responds to a great concern for both Marshall and Story: that a general law prohibiting all future contracts, according to the majority opinion, would escape any possibility of cancellation. A challenge of interpretation arises as to what elements mentioned in the Northwest Regulation are transferred to the lighter contractual clause, which is clearly more categorical. Part of the difficulty is due to confusion as to why the Framers enshrined this clause in the Constitution. One of the explanations frequently provided by Professor Michael McConnell is that it was designed to protect intergovernmental contracts from government attacks. See Michael W. McConnell, Contract Rights and Property Rights: A Case Study in the Relationship Between Individual Liberties and Constitutional Structure, 76 Cal. L. Rev. 267 (1988). Restrictions on the internal legislative powers of states – for example.

B in treaty obligation laws – are derogated in the same way from any claim to sovereignty. Of course, states have retained enormous legislative powers that would continue to dominate the affairs of American governance in the decades to come. But the idea that states remain sovereign entities, in the traditional sense, no longer made sense. The powers denied to Congress are on a short list in Article I, Section 9. The article begins with the fact that Congress prohibited the restriction of the slave trade until 1808, one of the main compromises between the northern and southern states.

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