Law and the government are there to do what benefits the society that grants them their power. Blindly upholding contracts does not benefit the society that grants them their power.
("But look at all these other things they do that suck!" - yup, I'm there with you, but the purpose of government is to be just, which is not the same thing as clueless.)
("But look at all these other things they do that suck!" - yup, I'm there with you, but the purpose of government is to be just, which is not the same thing as clueless.)