A contractor walks off the job. A client refuses to pay for completed work. A vendor delivers something materially different from what was specified. Whatever the specifics, a breach of contract puts you in an unwanted position: you held up your end of the agreement and the other party didn’t.
What you do next determines your options — and what you say in the early stages of a dispute can shape those options considerably. This post covers the framework for contract dispute resolution in New Hampshire. For background on what to look for before signing, see our post on 5 things a contract lawyer checks before you sign.
Moving too slowly forfeits your legal rights. Moving without a clear strategy makes settlement harder and litigation more expensive.
First: Confirm the Nature and Scope of the Breach
Before taking any formal action, precision matters. A breach of contract occurs when a party fails to perform a contractual obligation without a legally valid excuse. Not every performance dispute constitutes a breach — and not every breach is worth pursuing.
Questions to Work Through Before Taking Action
- Is there a clear, enforceable contract — written or oral?
- What specific obligation was not performed, and does the contract unambiguously require it?
- Was there a cure period, and did it pass without remediation?
- Is the breach material — significant enough to justify treating the contract as ended?
- Have you fully performed your own obligations, or is your performance in question?
- What damages has the breach actually caused?
Option 1: Demand Letter
A demand letter from a New Hampshire contract lawyer is frequently the most efficient first step. It formally places the other party on notice of the breach, states specifically what performance or payment you are demanding, sets a deadline for compliance, and creates a written record that will be useful if litigation follows.
A significant percentage of contract disputes — particularly payment disputes — resolve after a demand letter. The other party often concludes that performing or paying is less expensive than defending a lawsuit, particularly once an attorney is involved. This is typically the most cost-effective path to resolution.
Option 2: Mediation
If demand letters don’t resolve the matter, mediation is often the next step — either because the contract requires it or because both parties prefer to avoid the cost of litigation. Mediation is a structured negotiation facilitated by a neutral third party, governed in New Hampshire by the Court’s ADR program.
| Resolution Path | Typical Timeline | Cost Range | Binding? |
|---|---|---|---|
| Demand Letter | Days to weeks | Lowest | If accepted |
| Mediation | Weeks to months | Moderate | Only if settled |
| Litigation — Circuit Court (small claims) | Months | Moderate | Yes — judgment |
| Litigation — Superior Court | 1–2+ years | Highest | Yes — judgment |
Option 3: Litigation
When the other party won’t respond or won’t negotiate in good faith, litigation may be the right path. In New Hampshire, contract disputes are brought in Superior Court or, for smaller amounts, in the Circuit Court’s civil division. Litigation provides access to discovery — the ability to compel document production and depositions — and ultimately a binding, enforceable judgment.
Under RSA 508:4, the three-year limitations period is the governing constraint. Courts enforce it strictly — filing one day late is the same as never filing at all.
What You Can Recover
Expectation Damages
The standard remedy — an amount intended to put you in the position you would have been in had the contract been performed. Includes value of undelivered performance, costs incurred, and foreseeable lost profits.
Restitutionary Damages
Where expectation damages are uncertain, you may recover the value of the benefit you conferred on the breaching party — preventing unjust enrichment.
Specific Performance
In limited circumstances involving unique goods or real property, a court can order the breaching party to actually perform the contract rather than simply pay damages.
Attorney’s Fees
Generally not recoverable in NH contract disputes unless the contract expressly provides for fee-shifting or a specific statute applies. This is why the fee-shifting provision in your contract matters significantly.
Dealing With a Contract Dispute in New Hampshire?
Granfield Legal Services handles demand letters, negotiation, and litigation for contract disputes across NH and MA — affordable, transparent fees.
(603) 637-1637 Learn About Our Contract Dispute Services →Available by phone, video, or in person · Serving NH & MA
This article is for general informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by reading this post. Attorney advertising.
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