NM Stat § 55-1-205 (2021)
2021 New Mexico Statutes|Chapter 55 - Uniform Commercial Code|Article 1 - General Provisions|Part 2 - GENERAL DEFINITIONS AND PRINCIPLES OF INTERPRETATION|Section 55-1-205 - Reasonable time; seasonableness.

(a) Whether a time for taking an action required by the Uniform Commercial Code is reasonable depends on the nature, purpose and circumstances of the action. (b) An action is taken seasonably if it is taken at or within the time agreed or, if no time is agreed, at or within a reasonable time. History: 1953 Comp., § 50A-1-204, enacted by Laws 1961, ch. 96, § 1-204; 1978 Comp., § 55-1-204; recompiled by compiler as NMSA 1978, § 55-1-205; Laws 2005, ch. 144, § 13. ANNOTATIONSOFFICIAL COMMENTS UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved. Source. — Former Section 1-204(2)-(3) [55-1-204(2)-(3) NMSA 1978]. Changes from former law. — This section is derived from Subsections (2) and (3) of former Section 1-204 [55-1-204 NMSA 1978]. Subsection (1) of that section is now incorporated in Section 1-302(b) [55-1-302(b) NMSA 1978]. 1. Subsection (a) makes it clear that requirements that actions be taken within a "reasonable" time are to be applied in the transactional context of the particular action. 2. Under Subsection (b), the agreement that fixes the time need not be part of the main agreement, but may occur separately. Notice also that under the definition of "agreement" (Section 1-201 [55-1-201 NMSA 1978]) the circumstances of the transaction, including course of dealing or usages of trade or course of performance may be material. On the question what is a reasonable time these matters will often be important. Point 1: Sections 1-203, 2-104 and 2-202. Point 2: Section 2-208. Point 4: Section 2-201 and Part 3 of Article 2. Point 6: Sections 1-203 and 2-302. Point 8: Sections 1-102 and 1-201. Point 9: Section 2-204(3). "Agreement". Section 1-201. "Contract". Section 1-201. "Party". Section 1-201. "Term". Section 1-201. Repeals and reenactments. — Laws 2005, ch. 144, § 13, effective January 1, 2006, repealed former 55-1-205 NMSA 1978 as enacted by Laws 1961, ch. 96, § 1-205, and enacted a new 55-1-205 NMSA 1978. Laws 2005, ch. 144, § 13, effective January 1, 2006, repealed former 55-1-205 NMSA 1978, as enacted by Laws 1961, ch. 96, § 1-205, relating to course of dealing and usage of trade, and enacted a new 55-1-205 NMSA 1978. The substance of former 55-1-205 NMSA 1978 has been enacted as a new 55-1-303 NMSA 1978 by Laws 2005, ch. 144, § 13. For provisions of former 55-1-204 NMSA 1978, see the 2004 NMSA 1978 on NMOneSource.com. Cross references. — For applicability of supplementary general principles, see 55-1-103 NMSA 1978. Reasonable to require loss claims to be made within two days. — In general, a contract provision requiring claims of loss to be made within two days of delivery is reasonable, lawful and not unconscionable. Bowlin's, Inc. v. Ramsey Oil Co., 1983-NMCA-038, 99 N.M. 660, 662 P.2d 661, cert. denied, 99 N.M. 644, 662 P.2d 645. Lessee held to have acted reasonably. — Where lessee wrote assigner of leases before the expiration of either lease, the manner in which lessee notified assignee of its election to purchase certain cranes and the presentment of full payment in fewer than 30 days from expiration of the leases, were acts done in a reasonable fashion, and certainly within a reasonable time, as required by the Uniform Commercial Code. Cranetex, Inc. v. Mountain Dev. Corp., 1987-NMSC-051, 106 N.M. 5, 738 P.2d 123. Law reviews. — For article, "The Warehouseman vs. the Secured Party: Who Prevails When the Warehouseman's Lien Covers Goods Subject to a Security Interest?" see 8 Nat. Resources J. 331 (1968). For article, "Survey of New Mexico Law, 1979-80: Commercial Law," see 11 N.M.L. Rev. 69 (1981). For survey, "Civil Procedure in New Mexico in 1975," see 6 N.M. L. Rev. 367 (1976). Clovis Nat'l Bank v. Thomas, 77 N.M. 554, 425 P.2d 726 (1967), commented on in 8 Nat. Resources J. 183 (1968). Am. Jur. 2d, A.L.R. and C.J.S. references. — 11 Am. Jur. 2d Bills and Notes §§ 39, 63; 15A Am. Jur. 2d Commercial Code §§ 3, 28, 52; 68A Am. Jur. 2d Secured Transactions §§ 31, 584 et seq. 17A C.J.S. Contracts § 325; 25 C.J.S. Customs and Usages §§ 1, 14.