This case was a dispute between the Provident Institution for Savings and the Mayor and Aldermen of Jersey City. The Provident Institution for Savings was a corporation that was chartered by the state of New Jersey in 1839. The corporation was created to provide banking services to the citizens of Jersey City. The Mayor and Aldermen of Jersey City had passed an ordinance that imposed a tax on the corporation's property. The corporation argued that the ordinance was unconstitutional because it violated the Contract Clause of the United States Constitution. The Supreme Court held that the ordinance was unconstitutional because it impaired the obligation of the contract between the corporation and the state of New Jersey. The Court reasoned that the contract between the corporation and the state of New Jersey was a valid contract and that the ordinance interfered with the contractual rights of the corporation. The Court also held that the ordinance was an unconstitutional taking of the corporation's property without just compensation. The Court concluded that the ordinance was unconstitutional and that the corporation was entitled to a refund of the taxes that it had paid. The Court also held that the ordinance was void and that the corporation was not required to pay any taxes in the future.

In Provident Institution for Savings v. Mayor & Aldermen of Jersey City, the Supreme Court was asked to decide whether a city ordinance that imposed an annual tax on savings banks violated the Contract Clause of the United States Constitution. The majority opinion held that it did not violate this clause because there was no contract between the parties and thus nothing to be impaired by such taxation. Justice Field dissented from this decision, arguing that although there may have been no express contract between the two parties, one could still be implied in fact based on their relationship and mutual understanding. He argued further that even if such a contract existed, it would still be subject to impairment under Article I Section 10 of the Constitution since its terms were altered by virtue of imposing additional taxes upon them without their consent or agreement.