Bishop v. Beecher

1960

Court: NM Supreme Court

Facts: Vendees had a land contract for purchase of a house. It has a strict foreclosure option. They miss a payment, and the vendors exercise the clause. Vendees ofer to pay the entire balance, with interest, costs, and attorney fees, but the vendors refuse.

Posture: Vendees sue, asking the court to create an equitable mortgage. Lower court denies. Appeal.

Issue: Is this an equitable mortgage, so that vendees would have an equity of redemption?

Holding: No. The court isn't going to rewrite the contract.

Rule: We enforce contracts as written.

Reasoning: There's no inequity here: it was a fair contract, in accordance with normal rules, and they got to live in the house for cheap for almost 6 years. Land contracts require very minimal down-payments, and the cost for that is that you don't get the same kinds of protection you do with a mortgage. The fact that strict foreclosure was optional doesn't convert this into a mortgage.

Dicta: