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The Contract Clause was inspired in part by a flurry of laws passed by states which had effects on existing debts. There was concern that state legislatures were going to, or had already, passed laws, such that creditors were being dispossessed of their property, in essence, the debts were being wiped out, or nearly so. Now, the extent to which the Contract Clause actually prevents government from passing laws that affect the relationships between creditors and debtors - thats a whole area of controversy that deserves, I think, careful attention. The question, as always, is how far does this limitation on the power of state legislatures to pass statutes that affect contracts, go? One might say that the Contract Clause is meant to ensure that there will be a very high level of stability when it comes to contractual obligations. That is that those who enter into contracts, can be quite sure that government isnt going to do anything, or at least not be able to do very much so as to cha
