In 1819 the New Hampshire Legislature attempted to alter the
charter of Dartmouth College, which was granted by George III in
1769. New Hampshire was attempting to turn Darmouth College from a
private institution into a public body, gaining control of its
board of trustees. The Supreme Court ruled that the legislature
could not interfere in a contract between private parties, even
though the United States had since gained independence from Britain
and its monarchy. This ruling set the precedence that states had
limited powers when intervening in business contracts between
private individuals.
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