What effect the sancity of contracts have on stae governments power?

Answer 1

The sanctity of contracts reinforces the stability and predictability of legal agreements, which can limit state governments' power to alter or invalidate contracts arbitrarily. This principle protects private parties from government interference, ensuring that contracts are honored as legally binding commitments. Consequently, while state governments retain the authority to regulate and legislate, their ability to modify or invalidate existing contracts is constrained, fostering a more stable economic environment. This balance encourages investment and economic growth by providing assurance that agreements will be upheld.