Fletcher v. Peck - Significance

This was the first time a state law was found invalid because it conflicted with the U.S. Constitution.

The story of Fletcher v. Peck is the story of bribery, corruption, and the sanctity of contracts. From one of the most scandalous episodes in Georgia state history came a major legal decision that ratified the importance both of contracts and of the federal government.

The story began in 1795, when the Georgia state legislature sold huge portions of its western lands, known as the Yazoo lands. Eventually, this area became the states of Alabama and Mississippi. Meanwhile, the 30 million acres were sold by the state of Georgia for the bargain price of $500,000, or only one-and-a-half cents per acre. Even in 1810, that price was ridiculously low.