What are my rights if a PNG supplier breaches a written services contract after I pay upfront?

In Papua New Guinea
Last Updated: Nov 22, 2025
I hired a local contractor in Port Moresby to refurbish my shop and paid 70% upfront based on a written contract. They stopped work and refuse to finish or refund, and I’m unsure what remedies PNG courts offer for breach of contract. Do I really need a lawyer to pursue a claim, and how long might it take?

Lawyer Answers

mohammad mehdi ghanbari

mohammad mehdi ghanbari

Nov 27, 2025

Dear,


I am sorry to hear about your situation with the shop refurbishment. Based on what you described—paying 70% upfront and the contractor abandoning the work—this appears to be a clear repudiatory breach of contract.


To answer your questions regarding your rights in Port Moresby:


Your Remedies: Under PNG law, you are generally entitled to "expectation damages." This is not just a refund; it is the cost required to hire a new contractor to finish the job, minus the 30% balance you still owe.


The Court System: If your claim is under K10,000, you can file in the District Court. If it is over K10,000, you must file in the National Court.​


Timeline: The National Court in Waigani currently has a significant backlog of civil cases, meaning a lawsuit could take 12 to 24 months to resolve.​


Do you need a lawyer? For the National Court, yes. However, legal fees in PNG can be very high.


My Recommendation:
Before hiring an expensive lawyer or waiting years in court, you should send a formal Letter of Demand referencing the specific breaches of the District Courts Act or common law. This often pressures contractors to refund or finish the work to avoid litigation.


I am a legal consultant specializing in contract disputes. Since I work internationally, I can assist you with a low-cost consultation via Gmail to review your contract and help you draft a strong Letter of Demand to resolve this immediately.

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