Many people assume that a contract must be in writing to be valid. However, under Swedish law, verbal agreements are generally just as legally binding as written ones—with certain exceptions. So, when does a spoken agreement count, and when do you need documentation?
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This article explains when a verbal agreement is valid under Swedish contract law, what risks are involved, and how to protect yourself in case of a dispute.
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What Is a Verbal Agreement?
A verbal agreement is an arrangement made through spoken words—during a conversation, phone call, or meeting—without any written documentation. For the agreement to be legally binding under Swedish law, it must include:
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An offer (a clear proposal)
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An acceptance (a clear “yes” to the terms)
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Once both parties agree on the essential terms, a contract is formed—even without anything written down.
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Are Verbal Agreements Valid Under Swedish Law?
Yes. According to the Swedish Contracts Act (Avtalslagen 1915:218), verbal agreements are generally valid and enforceable, unless a specific law requires the agreement to be in writing.
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Examples of valid verbal agreements in Sweden:
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Hiring a contractor after an on-site discussion
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Renting out a summer cabin via a phone call
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Selling goods between private individuals
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When Does the Law Require a Written Contract?
There are exceptions where Swedish law requires written form for the agreement to be valid. Examples include:
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Real estate transactions (according to the Land Code – Jordabalken)
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Certain tenancy agreements
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Gifts of real property
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Consumer credit agreements (e.g. loans or installment plans)
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In these cases, a verbal agreement is not enforceable—even if both parties agree.
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What Are the Risks of a Verbal Contract?
The biggest risk with verbal agreements is the lack of proof. If a dispute arises, it can be difficult to prove what was said or agreed upon.
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Common issues:
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The parties remember things differently
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There are no witnesses or records
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One party denies the agreement altogether
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How Can I Strengthen a Verbal Agreement?
To reduce the risk of disputes, consider the following:
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Send a follow-up email or text confirming what was agreed
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Ask the other party to confirm in writing
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Record the conversation (only legal if you are part of the call)
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Keep notes or documentation, even if informal
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Summary
Verbal agreements are generally valid under Swedish law, as long as no special legal requirements for writing apply. However, because they are harder to prove, they carry a higher risk of legal disputes—especially in business contexts or when large sums are involved.
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Our advice: Always seek written confirmation, even for simple deals. And for more complex agreements, consult a legal professional before making a binding commitment.
