The Contract Clause prohibits states from enacting any law that retroactively impairs contractual rights.

• A. Bill of Attainder
• B. Contract Clause
• C. Due Process Clause
• D. Takings Clause

Answer: (B)

The main idea being tested is protecting contract rights from state interference. The Contract Clause, found in the Constitution, prohibits states from enacting laws that retroactively impair existing contractual obligations. That retroactive impairment is exactly what this scenario describes, so this clause is the right fit. It’s about keeping promises made under contract from being undone by later laws, ensuring that private and public contracts remain reliable even if the legislature changes course.

The other concepts address different concerns: a Bill of Attainder punishes individuals without trial; the Due Process Clause protects fair procedures and fundamental rights; and the Takings Clause requires just compensation when the government takes private property for public use. None of these directly govern retroactive impairment of contractual rights, which is why they don’t fit this question.