What is an agreement?

 

 

What is an agreement?

An agreement is an agreement between two or more parties. Both oral and written agreements can be binding. Agreements can be entered into between different types of persons, by both private individuals and legal persons. In addition, the parties entering into an agreement must have legal capacity, for example be of legal age, sometimes have a power of attorney, not be bankrupt and more.

 

The main rule in contract law for when an agreement is to be considered entered into is when one party submits an offer that the other party accepts and thereby the parties enter into an agreement that is legally binding. The content of the agreement may regulate obligations, rights and other obligations in a contractual relationship, but also consequences if a condition in the agreement is violated.

 

A contractual relationship is based on reciprocity and a declaration of intent between the parties, ie the common will of the parties. It is always advisable to enter into written agreements before oral agreements due to the fact that there is then a codification of the parties' agreement.

 

In the case of oral agreements, it is difficult to prove the content of the agreement and exactly what the parties have agreed on. Documentation of the parties' communication prior to the conclusion of the agreement is also of the utmost importance as proof of the common will of the parties, which applies in particular when concluding oral agreements.

 

 

 

Swedish contract law

In Sweden, the main rule of contract law is that parties are covered by contractual freedom. In theory, this means that agreements, both written and oral, constitute agreements and that there are no detailed formal requirements. You and your partner are free to agree on what is relevant to your particular business or industry.

 

However, it is not as simple as all agreements being valid in the end. Freedom of contract is limited by general laws, specific laws, legal principles, industry practice and party practice.

 

The most fundamental and significant regulation of contract law is found in the Act (1915: 218) on contracts and other legal acts in the field of property law, or the Contracts Act as it is called. The Contracts Act has been amended a few times since 1915 and has mainly been modernized and updated through case law, which is why case law is of great importance in contract law.

 

The Contracts Act contains provisions that determine when an agreement shall be deemed to have been entered into, whether an agreement already entered into is invalid or whether there are reasons to adjust the meaning or application of an agreement after the conclusion of the agreement, a so-called adjustment. The Contracts Act is generally applicable and has great theoretical significance for contract law, which is why it should always be taken into account during the writing of the contract as it often becomes the basis for future disagreements.

 

Provisions on powers of attorney also follow from the Contracts Act. A power of attorney means an authorization of someone with the right to act on behalf of another, for example the right to enter into an agreement. Powers of attorney can be oral, written or follow from the circumstances, for example from a person's position within a company. With regard to powers of attorney, it is extremely important that they have been drawn up in a correct manner, that it is clear what the power of attorney covers and that it is clear to others what the power of attorney refers to. 

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