2021 New Mexico Statutes
Chapter 56 - Commercial Instruments and Transactions
Article 5 - Miscellaneous Provisions Relating to Commercial Instruments
Section 56-5-3 - Contracts not specifying time of performance; demand necessary.

Except as provided in the Uniform Commercial Code [Chapter 55, NMSA 1978], no contract for labor, or for the payment or delivery of property in which the time of performance is not fixed, can be converted into a money demand until a demand of performance has been made and the maker refuses or a reasonable time is allowed for performance.

History: Laws 1851-1852, p. 283; C.L. 1865, ch. 14, § 3; C.L. 1884, § 1727; C.L. 1897, § 2542; Code 1915, § 591; C.S. 1929, § 27-103; 1941 Comp., § 53-703; 1953 Comp., § 50-7-3; Laws 1961, ch. 96, § 11-108.

Purpose is to allow party last chance to perform. — The manifest purpose of this section is to give a party one last chance to perform his contract obligations prior to suit. Foster v. Colorado Radio Corp., 381 F.2d 222 (10th Cir. 1967).

This section has no application where the time for performance is fixed in the contract. Barnett v. Wedgewood, 1922-NMSC-068, 28 N.M. 312, 211 P. 601.

Generally, no demand for performance is necessary when agreement is absolute and unconditional. Data Gen. Corp. v. Commc'ns Diversified, Inc., 1986-NMSC-088, 105 N.M. 59, 728 P.2d 469.

Demand not required in action against realtor for fraud. — In bringing suit against a realtor for damages on account of claimed fraud in failing to buy real estate for the plaintiff, the demand required under this section was not a condition precedent to bringing the suit. Mitchell v. Allison, 1949-NMSC-070, 54 N.M. 56, 213 P.2d 231.

Law reviews. — For comment, "Commercial Law - Uniform Commercial Code - Sale of Goods," see 8 Nat. Resources J. 176 (1968).

Am. Jur. 2d, A.L.R. and C.J.S. references. — 17A Am. Jur. 2d Contracts §§ 201, 478.

Time for performance of contract for sale or exchange of land where time fixed by contract has been waived, 4 A.L.R. 815.

Rights of parties to a timber contract upon failure of purchaser to remove timber within a reasonable time, 15 A.L.R. 41, 31 A.L.R. 944, 42 A.L.R. 641, 71 A.L.R. 143, 164 A.L.R. 423.

Duration of real estate broker's contract which specifies no time, 24 A.L.R. 1537, 28 A.L.R. 893.

Delay in acceptance of work as coming within "no damage" clause with respect to the delay in construction contract, 74 A.L.R.3d 187.

17A C.J.S. Contracts § 478; 86 C.J.S. Time § 4.