A. An agreement may provide for liquidated damages in an amount that is reasonable at the time the agreement is executed and in light of anticipated harm and difficulty of proving the amount of loss resulting from breach of the agreement by any party.B. A provision in an agreement fixing unreasonably large liquidated damages is void as a penalty. History: Laws 2015, ch. 96, § 4; § 24-1I-4, recompiled as § 24A-4-4 by Laws 2024, ch. 39, § 132. ANNOTATIONSRecompilations. — Laws 2024, ch. 39, § 132 recompiled former 24-1I-4 NMSA 1978 as 24A-4-4 NMSA 1978, effective July 1, 2024.
New Mexico Legal Code