Communication between parties in an important process in their relationship can be based on a contract. This communication can for exemple be composed by a handwritten contract or an electronic contract. Contract law makes no difference between these two forms. to create more favourable requirements for commencing a contract or an ongoing contract there are possibilities to use standard agreements. Therefore a contract can be based on the will of the parties or on a standard agreement.

An electronic signature shall secure that electronic transferred information has not been altered and also to identify the sender of the information. By way of encryption information in a document is guarded from unauthorized acess. Electronic signatures are produced by using encryption technology which is devided into two groups, symmetrical and asymmetrical encryption. It is possible to secure this encryption in a "smart card" which functions like a charge card. To verify a signature is just as important as using encryption to secure information. A third party can be engaged by both parties. A company or a public authority can be engaged as long as they have no interest in the intermediary information. Who this third party is can be confirmed in a certificate. This certificate can also consist of details about the sender confirming that it is the right party.

Existing legislation is available since swedish contract law is applicable on electronic contracts and signatures. Two EC-directives concerning this area are also available for the parties to apply when using electronic contracts. Both directives are acknowledging electronic contracts and signatures the same legal effect as other forms of contracts, like handwritten and oral ones. Further they do not accept national laws that are making it difficult or that are forbidding the use of electronic communication.