Section 2

Citation: Section 2
Parent Document: Thorpe v. Housing Authority of Durham, 393 U.S. 268 (1969)
Jurisdiction: United States (federal)
Effective Date: 1969-02-24
Original Source: https://www.courtlistener.com/opinion/107814/thorpe-v-housing-authority-of-durham/ ↗

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The Authority also argues that under the Due Process Clause of the Fifth Amendment HUD is powerless to impose any obligations except those mutually agreed upon in the annual contributions contract.[31] If HUD's *279 power is not so limited, the Authority argues, HUD would be free to impair its contractual obligations to the Authority through unilateral action. Moreover, in this particular case, the Authority contends that HUD has not only impaired its own contract with the Authority, but it has also impaired the contract between petitioner and the Authority. The obligations of each of these contracts, however, can be impaired only "by a law which renders them invalid, or releases or extinguishes them . . . [or by a law] which without destroying [the] contracts derogate[s] from substantial contractual rights."[32] The HUD circular does neither.

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