Disputes arising from breach of contract are among the most common reasons foreign individuals and companies seek legal advice in Sweden.
Whether the issue concerns a commercial agreement, a service contract, or a private transaction, Swedish law provides a structured framework for assessing and resolving contractual breaches.
This article explains how breach of contract is handled under Swedish law and what to expect when seeking legal advice from a Swedish advokat.
1. Definition of Breach of Contract under Swedish Law
A breach of contract (avtalsbrott) occurs when one party fails to perform its contractual obligations.
Typical examples include:
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Non-payment or delayed payment,
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Delivery of defective goods or services,
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Failure to deliver on time, or
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Violation of confidentiality or exclusivity clauses.
Swedish contract law is based on general principles of good faith, fairness, and the binding nature of agreements.
There is no single “Contract Act” — instead, relevant rules come from case law, the Sale of Goods Act, and established legal practice.
2. Seeking Legal Advice Early
Before taking legal action, it is advisable to consult a Swedish advokat early in the process.
An experienced lawyer can:
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Review the contract’s wording and governing law,
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Assess whether a breach has occurred,
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Estimate possible damages, and
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Advise on negotiation or settlement options.
Early advice often helps resolve disputes efficiently and avoid unnecessary escalation.
3. Remedies Available under Swedish Law
If a breach of contract is established, the injured party may be entitled to one or more of the following remedies:
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Specific performance (requiring the other party to fulfil the agreement),
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Price reduction for defective goods or services,
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Termination of the contract, and/or
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Damages (skadestånd) for financial loss.
The amount of damages depends on proof of loss and the foreseeability of the breach.
Swedish law does not generally award punitive damages; compensation is strictly linked to actual loss.
4. Evidence and Documentation
Swedish proceedings rely heavily on written evidence.
Parties should collect and preserve:
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The original contract and any amendments,
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Invoices, delivery notes, and correspondence,
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Meeting notes or written confirmations, and
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Any expert opinions or reports on performance or value.
Even emails or text messages may be used to show how the parties understood their obligations.
5. Negotiation, Mediation, and Settlement
Swedish legal culture favours negotiated solutions where possible.
Before filing a claim, your advokat will usually attempt to settle the dispute through written communication or mediation.
Mediation has the advantage of being cost-effective and preserving business relationships, especially in ongoing commercial partnerships.
6. Court and Arbitration Options
If settlement fails, the dispute may proceed to:
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Civil court — handled by the District Court (Tingsrätt), or
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Arbitration — if the contract includes an arbitration clause (for example, under the SCC Rules).
Both systems are well established and allow for representation by a Swedish advokat.
Foreign clients can participate remotely, and proceedings can often be conducted in English.
7. Costs and Legal Representation
Lawyers in Sweden charge by the hour and provide a written engagement letter explaining terms and expected costs.
Foreign clients are typically asked to pay an advance fee (retainer) before representation begins.
If your company wins the case, you may recover reasonable legal expenses from the opposing party, depending on the outcome and court discretion.
8. Enforcement of Swedish Judgments
Judgments and arbitration awards from Sweden are enforceable across the EU and in most countries through international treaties such as the New York Convention.
Your advokat can coordinate enforcement abroad if the opposing party is not based in Sweden.
Summary
Breach of contract cases in Sweden are handled through a structured and predictable process.
A Swedish advokat can evaluate the contract, identify the breach, and guide you through negotiation, litigation, or arbitration.
For foreign clients, the entire process can be managed remotely and in English, ensuring effective legal protection under Swedish law.
