In international transactions, contracts often involve parties, assets, or obligations connected to more than one country. This raises a critical question: which law applies and which court has jurisdiction?
Under Swedish law, these issues are governed by well-established principles of private international law and — for EU-related matters — by directly applicable EU regulations. Understanding how Sweden handles conflicts of laws and jurisdiction is essential when structuring transactions or requesting a Swedish legal opinion.
The Principle of Party Autonomy
Swedish law recognises the fundamental concept of party autonomy.
This means that contracting parties are generally free to choose:
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The governing law of their agreement, and
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The forum or court that will have jurisdiction in case of dispute.
Such choices are usually respected by Swedish courts — provided they are clearly expressed and not contrary to public policy or mandatory Swedish law.
In practice, this means a Swedish court will often apply foreign law if the contract so provides, but it will interpret that law through Swedish procedural rules.
Governing Law in Contractual Matters
For most commercial contracts, the applicable law is determined by the Rome I Regulation (EC No 593/2008).
If no governing law is chosen, the regulation applies connecting factors such as:
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The habitual residence of the party performing the characteristic obligation, or
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The country most closely connected to the contract.
Swedish courts therefore follow EU standards when identifying the applicable law — and this approach is also reflected in Swedish legal opinions, especially in cross-border transactions.
Jurisdiction and the Role of EU Law
Jurisdiction in civil and commercial matters is mainly determined by the Brussels I Recast Regulation (EU No 1215/2012).
Parties may agree that disputes will be handled by:
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Swedish courts, or
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The courts of another EU member state.
If no jurisdiction clause exists, Swedish courts assess whether there is a sufficient connection to Sweden, such as domicile, business location, or assets in the country.
For non-EU parties, Sweden applies national rules on jurisdiction contained in the Swedish Code of Judicial Procedure (Rättegångsbalken).
Mandatory and Public Policy Exceptions
Even when parties choose foreign law, Swedish courts may refuse to apply it if doing so would:
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Contradict mandatory Swedish legal provisions, or
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Violate Swedish public policy (ordre public).
This safeguard ensures that core principles — such as due process, equality, and protection of weaker parties — are upheld.
Conflicts of Laws in Swedish Legal Opinions
When issuing a Swedish legal opinion, an advokat will typically address:
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Whether Swedish law governs the transaction, or
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Whether Swedish conflict-of-law rules might refer to another jurisdiction.
The opinion will also confirm that the choice of Swedish law and Swedish courts is valid and enforceable under Swedish legal principles.
Why Legal Opinion Sweden
At Legal Opinion Sweden, we assist international clients in structuring transactions to avoid jurisdictional uncertainty.
Our Swedish advokater provide legal opinions and strategic guidance that align with both Swedish private international law and EU regulations, ensuring clarity on governing law and dispute resolution.
In short:
Swedish law respects party autonomy but balances it with EU rules and public policy safeguards.
A Swedish legal opinion can confirm that your choice of law and forum is both valid and enforceable — reducing the risk of cross-border uncertainty.
