The work represented a staunch defence of papal supremacy, albeit one couched in somewhat contingent terms.
In the next part, contracts providing for only some contingencies are examined and are shown to be advantageous, due both to difficulties that could arise in making and enforcing contingent terms and to the presence of implicit substitutes for them.
In the following, major part of the article, two of these substitutes for contingent terms are analyzed: remedies for breach, and the opportunity for renegotiation; the existence of both is demonstrated to induce parties to behave approximately as they would under detailed contracts.
But the modern Republican party can't think in these sorts of qualified, contingent terms.
But it is only a contingent truth that the terms that can substitute for F in his formal proof are generally but not always sortals of an Aristotelian kind.
In this way, these informal mechanisms can reinforce the more formal elements of a derivative contract: creating incentives for the use of detailed state-contingent terms and the allocation of property and decision-making rights in good times by providing a safety valve for modifying or relaxing the strict application of these terms in bad times.
For all their sophistication, the detailed state-contingent terms at the core of derivative contracts are inevitably incomplete.
These state-contingent terms govern the parties' payment obligations, the circumstances in which they will be required to post collateral, and the consequences of default.
In good times, the role of the valuation agent is essentially administrative: observing market prices and other input variables and feeding them into the detailed state-contingent terms embedded within every derivative contract.
The threat of reputational sanctions and the loss of future revenue can create incentives for counterparties to engage in cooperative problem-solving under circumstances where the rigid application of state-contingent terms is either impracticable or would lead to suboptimal outcomes.
I generally like being a contingent worker.
