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.

History: Laws 1982, ch. 27, § 10.

Compiler's notes. — This section is similar to § 1-112 of the Uniform Condominium Act, with the following main exception: paragraph (4) of subsection (b) of § 1-112 of the Uniform Condominium Act is not included in the state Condominium Act.

COMMISSIONERS' COMMENT

This section is similar to § 2-302 of the Uniform Commercial Code [55-2-302 NMSA 1978] and § 1-311 of the Uniform Land Transactions Act. The rationale and comments provided in those sections are equally applicable to this section.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 15A Am. Jur. 2d Condominiums and Cooperative Apartments § 22.

31 C.J.S. Estates § 153 et seq.