82,853
edits
Commercial imperative: Difference between revisions
no edit summary
Amwelladmin (talk | contribs) No edit summary |
Amwelladmin (talk | contribs) No edit summary |
||
| Line 6: | Line 6: | ||
===Why merchants transact=== | ===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. [[prime directive|Lots of money]]. If | 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. [[prime directive|Lots of money]]. If it does not, it is a ''dud''. 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 | Assuming you have not, we can assume your {{t|contract}} is yielding you a benefit. Let’s call that benefit “X”. | ||
X | X is made of three components: | ||
*'''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. | *'''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. | *'''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. | ||