Which case established the principle that charters are contracts that cannot be altered by the state?

Study for the South Carolina U.S. History EOC Test. Enhance your skills with flashcards and multiple choice questions. Prepare effectively for your exam with comprehensive hints and explanations.

The principle that charters are considered contracts that cannot be altered by the state was established in Dartmouth College v. Woodward. This landmark Supreme Court case, decided in 1819, dealt with the New Hampshire legislature's attempt to change the charter of Dartmouth College, which had been granted by King George III in 1769. The Supreme Court ruled that the charter represented a contract, and under the Contract Clause of the U.S. Constitution, states cannot interfere with or alter private contracts. This decision underscored the protection of private institutions from government interference and solidified the concept of charters being treated as binding contracts.

The other cases mentioned do not relate to the issue of charters and contracts. McCulloch v. Maryland addressed the power of federal versus state authority regarding the Second Bank of the United States. Gibbons v. Ogden primarily dealt with interstate commerce and the powers of Congress over navigation. Worcester v. Georgia focused on the rights of Native American nations and the state's authority within their territories. Thus, none of these cases directly established the principle concerning charters as contracts in the manner that Dartmouth College v. Woodward did.

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