Every contract in writing hereafter made shall import a consideration in the same manner and as fully as sealed instruments have heretofore done.
History: Laws 1901, ch. 62, § 12; Code 1915, § 2181; C.S. 1929, § 45-608; 1941 Comp., § 20-208; 1953 Comp., § 20-2-8.
Bracketed material. — The bracketed material was inserted by the compiler and is not part of the law.
Under this section, it is not necessary, in a suit upon a written contract, to allege a consideration. Flores v. Baca, 1919-NMSC-053, 25 N.M. 424, 184 P. 532.
Express allegation of mortgagor's ownership. — In foreclosure complaint, an express allegation of mortgagor's ownership of mortgaged premises was unnecessary; it was implied. Franklin v. Harper, 1926-NMSC-059, 32 N.M. 108, 252 P. 170; Flores v. Baca, 1919-NMSC-053, 25 N.M. 424, 184 P. 532.
Option agreement. — Where option agreement was alleged to be in writing it was sufficient to withstand the attack of a motion to dismiss for failure to allege consideration. Rubenstein v. Weil, 1965-NMSC-137, 75 N.M. 562, 408 P.2d 140.
Contract which is not entirely in writing is regarded as an oral or verbal contract, and a complaint in a suit upon such a contract, which fails to allege a consideration, is fatally defective. Flores v. Baca, 1919-NMSC-053, 25 N.M. 424, 184 P. 532.
Under this section, a draft imports a consideration. First Nat'l Bank v. Home Ins. Co., 1911-NMSC-010, 16 N.M. 66, 113 P. 815.
"Import a consideration" construed. — The language "import a consideration," as used in this section, means that in the absence of evidence on the point, it will be presumed that there was a sufficient consideration and the burden of proof on the question is on the party denying the existence of consideration. Burt v. Horn, 1982-NMCA-037, 97 N.M. 515, 641 P.2d 546.
A deed, being merely a specialized form of contract, consideration is imported in the same manner and as fully as sealed instruments. Rael v. Cisneros, 1971-NMSC-073, 82 N.M. 705, 487 P.2d 133.
Adjustment of disputes is sufficient consideration. — If disputes have arisen under a contract, and the parties thereto enter into a new contract as a means of adjusting such disputes, such adjustment of disputes is a sufficient consideration. Burt v. Horn, 1982-NMCA-037, 97 N.M. 515, 641 P.2d 546.
Instrument bearing evidence of lack of consideration destroys presumption. — Where the instrument upon its face bears the evidence of its infirmity and lack of consideration, it without more furnishes the proof which destroys the presumption of consideration. Burt v. Horn, 1982-NMCA-037, 97 N.M. 515, 641 P.2d 546.
Am. Jur. 2d, A.L.R. and C.J.S. references. — 17A Am. Jur. 2d Contracts § 121; 68 Am. Jur. 2d Seals § 11.
17 C.J.S. Contracts §§ 15, 72.
Structure 2021 New Mexico Statutes