Social contract theory in action with national government?

 Social contract theory, nearly as old as philosophy itself, is the view that persons' moral and/or political obligations are dependent upon a contract or agreement among them to form the society in which they live.

(looked some information on this topic up to help you a bit better)

:)

this means that germany had to pay the allied countries. reparations are/is essentially payment for something that they have done wrong, so after ww1, germany was forced to pay reparations so they could replenish the allied countries resources' that they had lost during the war.