Sweden

Abstract

Swedish contract law is fragmentary. Outside consumer law, no major reforms have been introduced in the last fifty years, apart from a provision in the Contract Act on unfair contract terms and change of circumstances from 1976 and a new Sales of Goods Act from 1990. Contract law has developed mainly in doctrine and case law. Although it does not follow from express legislation, it is now clear that there is a liability for negotiations in bad faith. Agency is perhaps undergoing a small case law reform in favour of third parties. We have seen quite extensive and liberal case law relating to illegal contracts and contracts against good morals. Case law indicates that the Contract Act provision on unfair contract terms and change of circumstances is applied extremely rarely in business-to-business-relationships. Modern interpretation of contracts is closely parallel to UNIDROIT Principles and Principles of European Contract Law.