Subject to these conditions, all contracts whatsoever, for conveying rights of property—that is, for buying and selling, borrowing and lending, giving and receiving property—are naturally obligatory, and bind such rights of property as they purport to convey.
Subject to these conditions, all contracts, for the conveyance of rights of property, are recognized as valid, all over the world, by both civilized and savage man, except in those particular cases where governments arbitrarily and tyrannically prohibit, alter, or invalidate them.
This natural "obligation of contracts" must necessarily be presumed to be the one, and the only one, which the constitution forbids to be impaired, by any State law whatever, if we are to presume that the constitution was intended for the maintenance of justice, or men's natural rights.
On the other hand, if the constitution be presumed not to protect this natural "obligation of contracts," we know not what other "obligation" it did intend to protect. It mentions no other, describes no other, gives us no hint of any other; and nobody can give us the least information as to what other "obligation of contracts" was intended.
It could not have been any "obligation" which the State lawmakers might arbitrarily create, and annex to all contracts; for this is what no lawmakers have ever attempted to do. And it would be the height of absurdity to suppose they ever will invent any one "obligation," and attach it to all contracts. They have only attempted either to annul, or impair, the natural "obligation" of particular contracts; or, in particular cases, to substitute other "obligations" of their own invention. And this is the most they will ever attempt to do.
Section XIX.
Assuming it now to be proved that the "obligation of contracts," which the States are forbidden to "impair," is the natural "obligation"; and that, constitutionally speaking, this provision secures to all the people of the United States the right to enter into, and have the benefit of, all contracts whatsoever, that have that one natural "obligation," let us look at some of the more important of those State laws that have either impaired that obligation or prohibited the exercise of that right.
1. That law, in all the States, by which any, or all, the contracts of persons, under twenty-one years of age, are either invalidated, or forbidden to be entered into.
The mental capacity of a person to make reasonable contracts, is the only criterion, by which to determine his legal capacity to make obligatory contracts. And his mental capacity to make reasonable contracts is certainly not to be determined by the fact that he is, or is not, twenty-one years of age. There would be just as much sense in saying that it was to be determined by his height or his weight, as there is in saying that it should be determined by his age.
Nearly all persons, male and female, are mentally competent to make reasonable contracts, long before they are twenty-one years of age. And as soon as they are mentally competent to make reasonable contracts, they have the same natural right to make them, that they ever can have. And their contracts have the same natural "obligation" that they ever can have.