- This case had been a landmark decision in dealing with the application of the Contract Clause of the Constitution to private corporations.
- The case arose when the president of Dartmouth College had been removed, forcing the college to become a public institution. This change in status made it so, instead of the board of directors of the college, it was up to the state governor to appoint the college's trustees.
- It was ruled so that the sanctity of the original charter of the college was upheld both due to it predating the creation of the state itself and that it had been a corporation contract.