Editing Dartmouth College v. Woodward (section)

==Significance==
The decision was not without precedent; the Court had invalidated a state act in ''[[Fletcher v. Peck]]'' (1810),<ref name=Fletcher>{{ussc|name=Fletcher v. Peck|volume=10|page=87|pin=|year=1810|reporter=Cranch|reporter-volume=6}}.</ref> concluding that contracts, no matter how they were procured (in that case, a land contract had been illegally obtained), cannot be invalidated by state legislation. ''Fletcher'' was not a popular decision at the time, and a public outcry ensued. [[Thomas Jefferson]]'s earlier commiseration with New Hampshire Governor [[William Plumer]] stated essentially that the earth belongs to the living. Popular opinion influenced some state courts and legislatures to declare that state governments had an absolute right to amend or repeal a [[corporate charter]]. The courts, however, have imposed limitations on this.

After the Dartmouth decision, many states wanted more control, so they passed laws or constitutional amendments giving themselves the general right to alter or revoke at will, which the courts found to be a valid reservation.<ref>{{ussc|name=Miller v. State|link=|volume=82|page=478|pin=|year=1872|reporter=Wall.|reporter-volume=15}}.</ref><ref>{{ussc|name=Pennsylvania College Cases|link=|volume=80|page=190|pin=|year=1871|reporter=Wall.|reporter-volume=13}}.</ref> But the courts had established that the alteration or revocation of private charters or laws authorizing private charters must be reasonable and cannot cause harm to the members (founders, stockholders, and the like).<ref>{{ussc|name=Terrett v. Taylor|volume=13|page=43|pin=|year=1815|reporter=Cranch|reporter-volume=9}}.</ref><ref>{{ussc|name=Shields v. Ohio|volume=95|page=319|pin=|year=1877|reporter=|reporter-volume=}}.</ref><ref>{{ussc|name=Greenwood v. Freight Company|link=|volume=105|page=13|pin=|year=1881|reporter=|reporter-volume=}}.</ref>

The traditional view is that this case is one of the most important Supreme Court rulings, strengthening the [[Contracts Clause]] and limiting the power of the States to interfere with private charters, including those of commercial enterprises.<ref>{{Citation |title=Chapter 14. Private Contracts, the Contract Clause and the Police Power |date=1951-12-31 |url=http://dx.doi.org/10.7312/hend90602-015 |work=Charles Evans Hughes and the Supreme Court |pages=168–184 |access-date=2023-07-06 |publisher=Columbia University Press |doi=10.7312/hend90602-015 |isbn=978-0-231-87956-9 }}</ref>