Dartmouth College V. Woodward
Date: 1819
Case Background:
In 1769, the King of England chartered Dartmouth College in New Hampshire. The school was given a purpose, structure to how it was to be governed and land. In 1816, the New Hampshire state legislature passed a law that revised the original charter. The law included changing the school from a private to a public college. The trustees, their selection process and responsibilities were changed. Issue: Under the Constitution, can the New Hampshire state legislature change the original charter of Dartmouth College. Decision: The Supreme Court decided in favor of Dartmouth, ruling so that Dartmouth could continue to be a private college. The contract was still valid because the Constitution states that a state cannon pass laws which impair a contract. Impact: This decision encouraged business investment and growth. States could no longer pass laws to impair charters, which essentially made businesses more secure. It also added to the nation's prosperity because investors and employers were attracted to the security. |
Justice: John Marshall
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