Entering into agreements is part of everyday life – whether in business, at work, or in private matters. But what does Swedish law say about contracts? Here you will find 100 common questions and answers about Swedish contract law.
1. What is contract law?
It is the area of law that regulates how contracts are formed, enforced, and terminated.
2. What is a contract?
An agreement between two or more parties that creates legal obligations.
3. Does a contract need to be in writing?
No, most contracts can be oral, but written contracts are easier to prove.
4. What is required for a valid contract?
Both parties must agree, have legal capacity, and the contract must not violate the law.
5. What is an offer?
A proposal to enter into a contract.
6. What is an acceptance?
An agreement to the terms of an offer.
7. Can an oral contract be binding in Sweden?
Yes, unless the law requires the contract to be in writing.
8. Are there contracts that must be in writing by law?
Yes, for example, real estate purchases.
9. What is a standard contract?
A pre-formulated agreement used repeatedly in similar transactions.
10. What are unfair contract terms?
Terms that are unreasonably burdensome on one party and may be invalidated by law.
11. What does mandatory legislation mean?
Laws that cannot be waived or altered to the disadvantage of a protected party, such as a consumer.
12. Can you cancel a contract in Sweden?
Only if the law or the contract itself allows for cancellation, for example, through a legal right of withdrawal.
13. What is the right of withdrawal?
A legal right for consumers to cancel certain contracts within 14 days, such as online purchases.
14. Does the right of withdrawal apply to all contracts?
No, it applies only to certain types, such as distance or doorstep sales.
15. What is an oral contract?
A contract agreed upon verbally without written documentation.
16. What is a written contract?
A contract where the terms are documented in writing, often with signatures.
17. What does freedom of contract mean?
The principle that parties are free to agree on the terms they choose, within legal limits.
18. Are there limitations on freedom of contract in Sweden?
Yes, especially where consumer protection laws apply.
19. Can minors enter into contracts in Sweden?
No, not without the consent of their legal guardians, except for minor everyday purchases.
20. What is invalidity in contract law?
When a contract is legally void due to factors like coercion or fraud.
21. What is an invalid contract term?
A term that cannot be enforced because it violates the law or is deemed unfair.
22. What is a standard form contract?
A contract where one party uses pre-set terms, often without negotiation.
23. What is the Swedish Consumer Sales Act?
A law that protects consumers when buying goods from businesses.
24. What is the Distance Contracts Act?
A law providing consumer rights for purchases made at a distance, such as online.
25. What is a business-to-business (B2B) contract?
A contract between two companies or professionals.
26. What is a consumer contract?
A contract between a business and a consumer.
27. Can you agree to disregard the law in a contract?
In some cases yes, but not if the law is mandatory.
28. What is the duty of loyalty in Swedish contract law?
The obligation for parties to act honestly and fairly toward each other during the contract.
29. What is contract interpretation?
Determining the meaning and intention of the contract terms in case of dispute.
30. What is a framework agreement?
An overall agreement that governs future detailed agreements between the parties.
31. What is a sub-agreement?
A more detailed agreement based on a prior framework agreement.
32. What is a promise in contract law?
A legally binding commitment to do or refrain from doing something.
33. What is a warranty or guarantee?
A promise about the quality or performance of a product or service.
34. What is a power of attorney (fullmakt)?
The legal authority given to someone to act on behalf of another.
35. Who is the principal in a power of attorney?
The person granting authority to someone else.
36. Who is the agent in a power of attorney?
The person receiving the authority to act on behalf of the principal.
37. What is a written power of attorney?
A formal document that proves someone’s authority to act for another.
38. What is an oral power of attorney?
A verbal authorization, although harder to prove.
39. What is authority (behörighet)?
The legal scope of what the agent is allowed to do.
40. What is authorization (befogenhet)?
Specific instructions given to the agent by the principal.
41. What happens if someone exceeds their authority?
The contract may not be binding if the other party knew or should have known the limits.
42. What is a company signatory (firmatecknare)?
A person authorized to sign agreements on behalf of a company.
43. What is exploitation in contract law?
Taking advantage of another party’s weak position to impose unfair terms.
44. What is coercion in contract law?
Forcing someone to enter into a contract under threat or pressure.
45. What is fraud in contract law?
Deceiving someone into entering a contract by providing false information.
46. What is exploitation (ocker)?
Taking advantage of someone’s desperate situation for personal gain.
47. What is a mistake in expression?
When someone says or writes something they did not intend.
48. What is a qualified acceptance?
When someone accepts an offer but with changed terms, which legally counts as a new offer.
49. What is a late acceptance?
When acceptance is given after the deadline, making it non-binding.
50. What is a contract (kontrakt)?
A written agreement between two or more parties.
51. What is the principle of reliance?
The idea that if someone relies on another’s promise, they may be entitled to compensation if it is broken.
52. What is liquidated damages?
A pre-agreed sum payable in the event of a breach of contract.
53. What is a disclaimer clause?
A clause limiting or excluding one party’s liability.
54. What is a force majeure clause?
A clause releasing parties from obligations due to unforeseen events beyond their control.
55. What are standard terms?
Pre-written contract terms used repeatedly in similar transactions.
56. What is incorporation of standard terms?
Making sure the other party agrees to and accepts the standard terms as part of the contract.
57. What is a clause?
A specific provision or section of a contract.
58. What is a breach of contract?
Failing to fulfill the contract as agreed.
59. What is a material breach?
A serious breach that allows the other party to terminate the contract.
60. What is contract termination (hävning)?
Ending the contract immediately due to serious breach.
61. What is contract cancellation (uppsägning)?
Ending the contract with notice, usually after a specific period.
62. What is limitation (preskription)?
When a legal claim expires after a certain time.
63. What is the limitation period for contracts in Sweden?
Generally ten years, but shorter (three years) for consumer claims.
64. What is a duty to complain (reklamation)?
Obligation to notify the other party about defects or breaches within a reasonable time.
65. What is a warranty clause?
A clause promising certain qualities or performance for a product or service.
66. What is delivery delay?
When a product or service is not delivered on time.
67. What is a penalty clause (vite)?
An agreed amount payable in case of breach.
68. What is a dispute resolution clause?
A clause specifying how disputes will be resolved, such as arbitration.
69. What is arbitration?
A private process where neutral arbitrators resolve the dispute outside of court.
70. What is a public court?
Courts such as the District Court (tingsrätt), Court of Appeal (hovrätt), and Supreme Court (Högsta domstolen).
71. What is a choice of law clause?
A clause specifying which country’s law applies to the contract.
72. What is jurisdiction?
The authority of a court to hear and decide a legal case.
73. What is an agreement on applicable law?
An agreement deciding which country’s laws will govern the contract.
74. What is a service agreement?
A contract for the provision of services.
75. What is a supply agreement?
A contract for the delivery of goods or services.
76. What is a consultancy agreement?
A contract for expert services provided by a consultant.
77. What is a cooperation agreement?
A contract for joint efforts between two or more parties.
78. What is a non-disclosure agreement (NDA)?
A contract requiring parties to keep certain information confidential.
79. What is a non-compete clause?
A clause restricting one party from competing with the other.
80. What is an employment contract?
A contract between an employer and an employee.
81. What is a lease agreement?
A contract for renting property or premises.
82. What is a franchise agreement?
A contract granting the right to use a business concept.
83. What is a license agreement?
A contract allowing the use of intellectual property.
84. What is a sales agreement?
A contract for the sale of goods.
85. What is a credit agreement?
A contract for borrowing money or goods.
86. What is a surety agreement (borgen)?
A contract where someone guarantees another’s debt.
87. What is a shareholder agreement?
An agreement between shareholders on the management of a company.
88. What is a transfer agreement?
A contract transferring ownership of something.
89. What is a deed of gift?
A written proof of a gift being given.
90. What is a real estate purchase agreement?
A written contract required when buying real property in Sweden.
91. What is a leasehold agreement?
A contract for renting land or agricultural property.
92. What is a leasing agreement?
A contract for renting equipment or vehicles.
93. What is a loan agreement?
A contract for lending money or items.
94. What is a co-financing agreement?
A contract where several parties share the cost of a project.
95. What is an option agreement?
A contract giving the right to enter into another contract later.
96. What is a pre-emption agreement?
A contract giving someone the right to buy something before others.
97. What is a testamentary agreement?
An agreement on the contents or validity of a will, usually between spouses.
98. What is a future power of attorney (framtidsfullmakt)?
A legal document giving someone authority to act for you if you become unable to do so.
99. What is a cohabitation agreement (samboavtal)?
A contract between partners living together, regulating their property rights.
100. Why is it important to get legal advice before signing a contract?
To ensure the contract is legally sound and protects your interests.
