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{{g}}The [[commercial imperative]] is the cold, hard bedrock of commercial reality which underpins every contract, every transaction, every ''thing'' about your relationship with your client, and which your client’s [[lawyer]] is certain to not understand. If she does understand it, she will profess not to care about it, claiming it is beside the point. It is ''not'' beside the point. It very much ''is'' the point. | {{g}}The [[commercial imperative]] is the cold, hard bedrock of commercial reality which underpins every contract, every transaction, every ''thing'' about your relationship with your client, and which your client’s [[lawyer]] is certain to not understand. If she does understand it, she will profess not to care about it, claiming it is beside the point. It is ''not'' beside the point. It very much ''is'' the point. | ||
=== | ===Why merchants transact=== | ||
Every merchant enters into a {{t|contract}} with a commercial aspiration; that all going well, that contract will yield some kind of ''benefit''. That is it; that is the ''[[Causa sine qua non|sine qua non]]'' of entering into ''any'' [[commercial contract]]: you hope that, over time, it will help you will make money. Lots of money. If you do not, it is a dud {{t|contract}}. You should dispense with it.<ref>By terminating it on notice, rather than by exploiting legal drafting, needless to say.</ref> | |||
Assuming you have not nixed it, we can assume your {{t|contract}} | Assuming you have not nixed it, we can assume your {{t|contract}} is yielding you a great benefit. Let’s call that benefit “X”. | ||
*'''Historical X''': “Historical X” is the benefit you have ''already'' extracted from this {{t|contract}}. | |||
*'''Current X''': “Current X” is the | There are three types of X: | ||
*'''Historical X''': “Historical X” is the benefit you have ''already'' extracted from this {{t|contract}}. Historical X will give you a comfy feeling, it brings to remind the chalet in France that you bought with it, and it may help project your expected benefit for the future, ''but for all other purposes Historical X is meaningless''. It is in the past. | |||
*'''Current X''': “Current X” is the as-yet-unrealised benefit you expect from transactions that already exist or will arise during the non-fault [[notice period]]<ref>Being the earliest point at which your counterparty could freely terminate its obligations under the contract.</ref> of the contract'' . Think about this as “unbilled work in progress”. This is a benefit you can safely say you ''will'' earn, but have not yet. It is exciting — almost tangible — but, compared with Historical X and Future X, it will amount to bugger-all. | |||
*'''Future X''': “Future X” is the benefit you can expect throughout the remainder of your relationship, ''assuming you both remain solvent and on good terms''.<ref>As [[Criswell]] famously said, “we are all interested in the future, for that is where you and I are going to spend the rest of our lives.”</ref> Future X is much less ''certain'', but it is potentially ''huge''. This is the golden prize. This is what you should be focused on in every moment when you perform the {{t|contract}}. | *'''Future X''': “Future X” is the benefit you can expect throughout the remainder of your relationship, ''assuming you both remain solvent and on good terms''.<ref>As [[Criswell]] famously said, “we are all interested in the future, for that is where you and I are going to spend the rest of our lives.”</ref> Future X is much less ''certain'', but it is potentially ''huge''. This is the golden prize. This is what you should be focused on in every moment when you perform the {{t|contract}}. | ||
===You are [[short an option]] on Future X=== | ===You are [[short an option]] on Future X=== | ||