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HEIGHTS REALTY, LTD. v. PHILLIPS
Supreme Court of New Mexico (1988) | 749 P.2d 77; 106 N.M. 692
TL;DR: A real estate broker sued to enforce a listing agreement signed by an elderly woman. The court found the contract unenforceable, holding that extensive lay testimony about the woman's long-term mental decline was sufficient to prove she lacked the capacity to contract.
Legal Significance: This case clarifies that the high burden of proving contractual incapacity by "clear and convincing evidence" can be met through credible lay testimony detailing a person's conduct over time, even when expert testimony is conflicting and there is some evidence of lucidity.