📜 BAR Exam Prep

The Contracts Clause prohibits states from:

A Making all contracts
B Substantially impairing existing contractual obligations without a significant and legitimate public purpose
C Enforcing contracts
D Creating new contracts

✓ Correct Answer: Option B

Article I, §10: states shall not pass laws impairing obligation of contracts. Applies to existing contracts; must have significant public purpose and reasonable means.

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