diff --git a/impls/src/backends/lmdb.rs b/impls/src/backends/lmdb.rs
index c0c4164..335eb8e 100644
--- a/impls/src/backends/lmdb.rs
+++ b/impls/src/backends/lmdb.rs
@@ -377,6 +377,8 @@ where
 		let (blind_xor_key, nonce_xor_key) =
 			private_ctx_xor_keys(&self.keychain(keychain_mask)?, slate_id)?;
 
+		// A missing context surfaces as Error::NotFoundErr (via the grin_store
+		// conversion), letting callers distinguish it from other store errors.
 		let mut ctx: Context = option_to_not_found(self.db.get_ser(&ctx_key, None), || {
 			format!("Slate id: {:x?}", slate_id.to_vec())
 		})?;
diff --git a/libwallet/src/contract/actions/sign.rs b/libwallet/src/contract/actions/sign.rs
index aef428a..544da7f 100644
--- a/libwallet/src/contract/actions/sign.rs
+++ b/libwallet/src/contract/actions/sign.rs
@@ -35,10 +35,12 @@ where
 	C: NodeClient + 'a,
 	K: Keychain + 'a,
 {
-	// Compute if we will add outputs at this step
+	// Compute if we will add outputs at this step. Only a missing context means we
+	// still need to add them; propagate any other error.
 	let will_add_outputs = match w.get_private_context(keychain_mask, slate.id.as_bytes()) {
 		Ok(ctx) => ctx.get_inputs().len() + ctx.get_outputs().len() == 0,
-		Err(_) => true,
+		Err(Error::NotFoundErr(_)) => true,
+		Err(e) => return Err(e),
 	};
 	// Compute state for 'sign'
 	let (sl, mut context) = compute(w, keychain_mask, slate, setup_args)?;
diff --git a/libwallet/src/contract/context.rs b/libwallet/src/contract/context.rs
index a260f22..15a5489 100644
--- a/libwallet/src/contract/context.rs
+++ b/libwallet/src/contract/context.rs
@@ -41,7 +41,8 @@ where
 	let maybe_context = w.get_private_context(keychain_mask, slate.id.as_bytes());
 
 	let context = match maybe_context {
-		Err(_) => {
+		// Only create a new context when there genuinely isn't one; propagate other errors.
+		Err(Error::NotFoundErr(_)) => {
 			// Get data required for creating a context
 			let height = w.w2n_client().get_chain_tip()?.0;
 			let parent_key_id =
@@ -57,6 +58,7 @@ where
 				false,
 			)?
 		}
+		Err(e) => return Err(e),
 		Ok(ctx) => ctx,
 	};
 	Ok(context)
diff --git a/libwallet/src/contract/utils.rs b/libwallet/src/contract/utils.rs
index 02550af..73846e1 100644
--- a/libwallet/src/contract/utils.rs
+++ b/libwallet/src/contract/utils.rs
@@ -158,7 +158,10 @@ where
 			}
 			expected_net_change = Some(ctx.get_net_change());
 		}
-		Err(_) => debug!("contract::utils::get_net_change => context not found"),
+		Err(Error::NotFoundErr(_)) => {
+			debug!("contract::utils::get_net_change => context not found")
+		}
+		Err(e) => return Err(e),
 	};
 
 	// Fail if net_change was not passed to setup_args and was also not present in the context.
diff --git a/libwallet/src/error.rs b/libwallet/src/error.rs
index 7335330..ee64d47 100644
--- a/libwallet/src/error.rs
+++ b/libwallet/src/error.rs
@@ -81,6 +81,10 @@ pub enum Error {
 	#[error("Wallet store error: {0}")]
 	Backend(String),
 
+	/// Requested item was not found in the wallet store
+	#[error("Not found: {0}")]
+	NotFoundErr(String),
+
 	/// Callback implementation error conversion
 	#[error("Restore Error")]
 	Restore,
@@ -348,7 +352,12 @@ pub enum Error {
 
 impl From<grin_store::Error> for Error {
 	fn from(error: grin_store::Error) -> Error {
-		Error::Backend(format!("{}", error))
+		// Preserve "not found" so callers can distinguish a missing item from other
+		// store errors; everything else collapses to a generic backend error.
+		match error {
+			grin_store::Error::NotFoundErr(s) => Error::NotFoundErr(s),
+			other => Error::Backend(format!("{}", other)),
+		}
 	}
 }