Section 47-7A-12 - Unconscionable agreement or term of contract. - New Mexico Statutes

47-7A-12. Unconscionable agreement or term of contract.

A.     The court, upon finding as a matter of law that a contract or contract clause was unconscionable at the time the contract was made, may refuse to enforce the contract, enforce the remainder of the contract without the unconscionable clause or limit the application of any unconscionable clause in order to avoid an unconscionable result.   

B.     Whenever it is claimed, or appears to the court, that a contract or any contract clause is or may be unconscionable, the parties, in order to aid the court in making the determination, shall be afforded a reasonable opportunity to present evidence as to unconscionability, including:   

(1)     the commercial setting of the negotiations;   

(2)     whether a party has knowingly taken advantage of the inability of the other party reasonably to protect his interests by reason of physical or mental infirmity, illiteracy or inability to understand the language of the agreement or similar factors; and   

(3)     the effect and purpose of the contract or clause.