Tomorrow the Supreme Court will hear arguments on that portion of Obamacare that requires citizens to purchase government mandated insurance from a private company, or pay a penalty.
Embedded in this discussion is basic contract law, so, I thought you might like to learn a piece of “Contracts 101”.
Under our law, each party must consent to both entering into a contract, and the specific terms of that contract, or the contract is void or voidable.
In the case of Obamacare, an individual is required to enter into a contract with an insurance company containing government mandated insurance coverage. Whether that person wants to enter into that contract with an insurance company at all, or whether that person wants the specific things mandated is irrelevant. That person must, by law, sign the contract.
Is this the type of coercion that renders the insurance contract void or voidable?
Or, is basic contract law suspended because of Congress’ action?
We’ll learn the answer in a few months.