Whenever the Uniform Commercial Code creates a "presumption" with respect to a fact, or provides that a fact is "presumed", the trier of fact must find the existence of the fact unless and until evidence is introduced that supports a finding of its nonexistence.

History: Laws 2005, ch. 144, § 14.

OFFICIAL COMMENTS

UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.

Source. — Former Section 1-201(31) [55-1-201(31) NMSA 1978].

Changes from former law. — None, other than stylistic changes.

Several sections of the Uniform Commercial Code state that there is a "presumption" as to a certain fact, or that the fact is "presumed." This section, derived from the definition appearing in former Section 1-201(31) [55-1-201(31) NMSA 1978], indicates the effect of those provisions on the proof process.

Purposes. — To fill the gap left by the statute of frauds provisions for goods (Section 2-201 [55-2-201 NMSA 1978]), securities (Section 2-319 [55-2-319 NMSA 1978]) and security interests (Section 9-203 [55-9-203 NMSA 1978]). The Uniform Sales Act covered the sale of "choses in action"; the principal gap relates to sale of the "general intangibles" defined in Article 9 (Section 9-106 [55-9-106 NMSA 1978]) and to transactions excluded from Article 9 by Section 9-104 [55-9-104 NMSA 1978]. Typical are the sale of bilateral contracts, royalty rights or the like. The informality normal to such transactions is recognized by lifting the limit for oral transactions to $5,000. In such transactions there is often no standard of practice by which to judge, and values can rise or drop without warning; troubling abuses are avoided when the dollar limit is exceeded by requiring that the subject-matter be reasonably identified in a signed writing which indicates that a contract for sale has been made at a defined or stated price.

"Action". Section 1-201.

"Agreement". Section 1-201.

"Contract". Section 1-201.

"Contract for sale". Section 2-106.

"Goods". Section 2-105.

"Party". Section 1-201.

"Sale". Section 2-106.

"Signed". Section 1-201.

"Writing". Section 1-201.

Repeals and reenactments. — Laws 2005, ch. 144, § 14, effective January 1, 2006, repealed former 55-1-206 NMSA 1978, relating to the statute of frauds, as enacted by Laws 1961, ch. 96, § 1-206, as amended, and enact a new 55-1-206 NMSA 1978, relating to presumptions.

Cross references. — For presumptions in civil cases, see 11-301 NMRA of the Rules of Evidence.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 15A Am. Jur. 2d Commercial Code §§ 37, 114; 72 Am. Jur. 2d Statute of Frauds § 130.

37 C.J.S. Frauds, Statute of § 138.