Dartmouth College was chartered in 1769 as a private school. When members of its board sought to have the state legislature convert the school to a state university, Federalist members of the school’s board of trustees argued that the charter was a contract and the federal constitution forbid states from voiding the obligations of contracts. Federalists sued William Woodward, a new trustee, and asked Daniel Webster to appeal their case. The court ruled that the state had no right to impair or invalidate the contract that made DC private. The decision upheld the sanctity of contracts and of private property. The decision as important in assuring economic development and encouraging investment in new corporations. In addition, it set a precedent for the Supreme Court’s overturning of state laws, through Fletcher v. Peck 1810, the court ruled a Georgia law
Dartmouth College was chartered in 1769 as a private school. When members of its board sought to have the state legislature convert the school to a state university, Federalist members of the school’s board of trustees argued that the charter was a contract and the federal constitution forbid states from voiding the obligations of contracts. Federalists sued William Woodward, a new trustee, and asked Daniel Webster to appeal their case. The court ruled that the state had no right to impair or invalidate the contract that made DC private. The decision upheld the sanctity of contracts and of private property. The decision as important in assuring economic development and encouraging investment in new corporations. In addition, it set a precedent for the Supreme Court’s overturning of state laws, through Fletcher v. Peck 1810, the court ruled a Georgia law