Businesses sometimes end up in conflicts with other companies, suppliers, customers, or partners. What does Swedish law say when a business dispute arises? Here you will find 100 common questions and answers about business disputes in Sweden.
1. What is a business dispute?
A legal conflict between companies or between a company and another business party.
2. When does a business dispute arise?
When the parties disagree on what applies according to a contract or the law.
3. Can a business dispute involve oral agreements?
Yes, oral agreements can be just as binding as written ones.
4. What are common causes of business disputes?
Breach of contract, payment issues, delivery problems, contract interpretation, and competition issues.
5. What is a breach of contract?
When a party fails to meet its obligations under a contract.
6. What is a delay in performance?
When a party fails to deliver on time according to the contract.
7. What is a defect in goods or services?
When what is delivered does not meet the agreed terms.
8. What is a payment delay?
When a party fails to pay as agreed.
9. What is a demand letter?
A written demand pointing out a breach and requesting correction or compensation.
10. What is a legal dispute?
When the parties cannot agree and submit the matter to a court or arbitration.
11. What is a settlement?
When the parties agree on a solution before or during legal proceedings.
12. What is a settlement agreement?
A written agreement confirming a mutually agreed solution.
13. Do you have to go to court in a dispute?
No, parties can often resolve the dispute through negotiation or mediation.
14. What is mediation?
A process where an independent person helps the parties reach an agreement.
15. What is arbitration?
A private dispute resolution where arbitrators decide the case.
16. What is an arbitration clause?
A contract clause stating that disputes must be resolved through arbitration.
17. Is an arbitration award binding?
Yes, an arbitration award is final and enforceable like a court judgment.
18. What does arbitration cost?
It can be expensive since the parties must pay the arbitrators’ fees.
19. When is arbitration appropriate?
In larger business deals where confidentiality and speed are prioritized.
20. What is public court litigation?
When a court handles the dispute according to Swedish legal procedures.
21. Which court handles business disputes in Sweden?
The general courts, usually the District Court (tingsrätt).
22. What is a statement of claim?
A written document that initiates a lawsuit.
23. What must a statement of claim include?
A description of the demand and the legal grounds for it.
24. Who can file a statement of claim?
The company seeking to initiate legal proceedings.
25. What is a statement of defense?
The written response provided by the defendant to the court.
26. What is a main hearing?
An oral hearing in court where both parties present their case.
27. What is the burden of proof?
The responsibility to prove certain facts in a dispute.
28. What is documentary evidence?
Contracts, invoices, emails, and other written materials used as evidence.
29. What is oral evidence?
Testimonies from people who can confirm the facts of the case.
30. What is a court judgment?
The court’s final decision in a dispute.
31. Can a judgment be appealed?
Yes, to the Court of Appeal (hovrätt) if there are grounds.
32. What is a final judgment?
A judgment that can no longer be appealed.
33. What is enforcement?
Using the Swedish Enforcement Authority (Kronofogden) to enforce a judgment.
34. What is the Swedish Enforcement Authority?
A government agency that assists in collecting debts and enforcing court decisions.
35. Can a company be declared bankrupt for unpaid debts?
Yes, if the company cannot pay its debts.
36. What is a bankruptcy petition?
A request for a company to be declared bankrupt.
37. What is company reorganization?
An opportunity for companies to restructure to avoid bankruptcy.
38. What is an intellectual property dispute?
A conflict over trademarks, copyrights, or patents.
39. What is a patent dispute?
A dispute over the rights to a technical invention.
40. What is a trademark dispute?
A conflict over the right to use a specific trademark.
41. What is a copyright dispute?
A dispute over rights to texts, images, or software.
42. What is unfair competition?
When a company acts unfairly toward competitors.
43. What is a non-compete clause?
A contract provision that restricts competition.
44. Are non-compete clauses always valid?
No, they must be reasonable in time, area, and scope.
45. What is a trade secret?
Confidential business information that must not be disclosed.
46. What is a confidentiality clause?
A contract provision that prohibits sharing certain information.
47. What happens if a party breaches confidentiality?
They may be liable for damages.
48. What is a penalty clause?
A pre-agreed amount payable in the event of a breach.
49. Can you claim interest on unpaid invoices?
Yes, according to the Swedish Interest Act.
50. What is late payment interest?
Interest charged on overdue payments.
51. Can a contract include dispute resolution clauses?
Yes, such as arbitration or negotiation requirements.
52. What is an exclusivity clause?
A clause stating that parties may only cooperate with each other.
53. What is a cooperation agreement?
A contract for joint business projects.
54. What is an agency agreement?
A contract where an agent sells goods or services on behalf of another.
55. What is a distribution agreement?
A contract to sell and distribute goods.
56. What is a supply agreement?
A contract for delivering goods or services.
57. What is a consultancy agreement?
A contract where a consultant performs services for a company.
58. What is a franchise agreement?
A contract to use a business concept and trademark.
59. What is a license agreement?
A contract granting the right to use intellectual property.
60. What is a purchase agreement between companies?
A contract for buying and selling goods or services between companies.
61. What is a warranty clause?
A promise that a product or service meets certain standards.
62. What is a force majeure clause?
A clause specifying what happens in unforeseen circumstances.
63. What is a limitation of liability clause?
A clause limiting the amount one party can be held liable for.
64. What is a contractual penalty?
An agreed fee for breaching certain terms.
65. What is a complaint or claim notice?
A demand to correct defects or issues.
66. What is a counterclaim?
A claim made by the defendant against the claimant.
67. What is set-off?
Offsetting a debt against a counterclaim.
68. What is a default judgment?
A judgment issued if one party fails to respond.
69. What is an enforceable title?
A decision that can be enforced by the Enforcement Authority.
70. What are interim measures?
Measures such as freezing assets to secure future payment.
71. What is a freezing order (kvarstad)?
Temporarily freezing assets to secure a claim.
72. What is an interim decision?
A temporary decision valid until the final judgment.
73. What is a simplified court procedure?
A faster and cheaper process for small claims (FT cases).
74. What is an ordinary civil procedure?
A standard court process for larger claims.
75. Can a company claim legal costs?
Yes, if the company wins the case, it may be entitled to compensation for its costs.
76. What are legal costs?
Expenses for lawyers, court fees, and other litigation costs.
77. Who pays the legal costs?
Generally, the losing party.
78. What is a legal representative?
A person representing a party in legal proceedings.
79. Must a company have legal representation?
No, but it is recommended to improve the chances of success.
80. What is party testimony?
When a party testifies under oath in court.
81. What is witness testimony?
When a third party testifies about the facts of the case.
82. What is an expert witness?
A specialist providing technical or professional opinions.
83. What is a counterclaim in the same case?
A counter-demand made by the defendant within the same proceeding.
84. What is a litigation power of attorney?
Authorization to represent someone in court.
85. What is contract interpretation?
Determining the meaning of unclear contract terms.
86. What is industry custom?
Unwritten rules in a particular industry that may influence contract interpretation.
87. What is the duty of loyalty?
The obligation to cooperate and not undermine the other party.
88. What is an unfair clause?
A contract term that can be invalidated for being unreasonable.
89. What is the duty to inform?
The obligation to disclose important information to the other party.
90. What is a contract proposal?
An offer that can be accepted or rejected.
91. What is a qualified acceptance?
A response that changes the content of the proposal, making it a new offer.
92. What is a late acceptance?
A response given after the deadline, making it non-binding.
93. What is passivity in contract situations?
Remaining silent may sometimes be interpreted as acceptance.
94. What is a framework agreement?
An overarching agreement regulating future transactions.
95. What is a call-off agreement?
An agreement where orders are made under a framework agreement.
96. What is an amendment agreement?
An agreement that modifies or supplements an existing contract.
97. What is a termination agreement?
An agreement confirming that all obligations have been fulfilled and the contract ends.
98. What is a confirmation?
A written confirmation that a contract has been concluded.
99. What should you consider before starting a legal dispute?
Conduct a cost and risk assessment.
100. Why should you seek legal advice in business disputes?
To increase your chances of success and avoid unnecessary costs.
