What was the Issue?
The issue of this case was whether or not the Georgia legislature could repeal the fraudulent sale. However, because of Fletcher's argument, the issue wouldn't be as simple as this. Fletcher had argued that Peck didn't own the land because Georgia never owned the land, therefore the sale of the land by Georgia was a fraud. Furthermore, Fletcher argued that because the Georgia legislature repealed the sale of the land, it no longer belonged to Peck. This argument meant that ruling in favor of Fletcher would not only take the land from those who bought it from Georgia, but from the state of Georgia itself.
The Ruling
The Supreme Court ruled in favor of Peck. John Marshall, delivering the majority opinion, stated that there was nothing in Georgia's constitution that would prevent it from selling the land, and that the sale couldn't be repealed because of fraud. Furthermore, regarding if the repeal effected the original sale, Marshall said that while a law can be repealed, acts done under that law cannot. He continued to say that it is unjust for a government to engage in a legal sale, then take back the sale without offering any compensation. This isn't stated anywhere in the Constitution, however it is implied by Marshall that this is justified by natural rights. Finally, Marshall cited Article 1 Section 10 of the Constitution as prohibiting the repeal. This is the contract clause, which states that no state can pass laws that "impair obligation to a contract".