The second part of this article unearths the deep reasons why some contract theories resist different contract models. I propose a typology of contract theory that roughly follows John Rawls` distinctions between pure, perfect, and imperfect theories of procedural justice. Pure and perfect contractual theories tend to justify the rules by which we identify and apply contractual obligations according to general contractual characteristics; Therefore, these rules are considered appropriate in all contractual frameworks. Contractual theories that view the contract as an imperfect means by which the parties manage the exchange are more likely to advocate specific rules on how they fit parallel contracts. As mentioned earlier, parallel loans avoid currency risk and possibly legal restrictions on cross-border lending. They also allow for lower interest rates, as any local business might have an advantage to borrow domestically, as opposed to borrowing as a local subsidiary of a foreign company. The creditworthiness of the subsidiary may not be as high and may be considered riskier than a foreign company. Mass nouns such as “water” or “mud” are neither singular nor plural. You can`t say “one water” or “two bodies of water” because everything is just a continuous object (unless you`re talking about two different containers of water).
Mass nouns represent a generic and unknown set of what they are. Parallel structure means using the same word pattern to show that two or more ideas have the same meaning. This can be done at the word, sentence or clause level. The usual way to connect parallel structures is to use coordination conjunctions such as “and” or “or”. A pronoun is a word that replaces a noun or group of nouns in a sentence or sentence. A pronoun must correspond in number and gender with the name or phrase to which it refers, which is known as a precursor. The correct pronoun-precursor correspondence is crucial for professional writing. The child stands near the door.: The title shows the need for a subject-verb correspondence. The third-person subject, “The Child,” requires that the verb also take a third-person singular form, “stands.” In some cases, you need to determine which parts of the sentence have a parallel meaning before making them parallel in the structure. Here`s an example: Most of the time, authors automatically use the subject-verb agreement. Most of us are so used to doing this that we don`t have to think about the rule to follow it.
Nevertheless, you should be aware of the subject-verb correspondence when editing your work, especially if it has undergone many revisions. This is something that authors can forget about publishing. Most mistakes happen because writers don`t pay close attention to the number and person of their subjects. This document describes and provides examples of parallel structures (similar word patterns). This article identifies a pervasive contractual model that is not sufficiently taken into account in existing law and theory. In the parallel contract, a party enters into a series of contracts with many persons in a similar situation on substantive terms that are likely to be identical. In these situations, the transaction costs associated with negotiating or even unilaterally adapting conditions to individuals outweigh the benefits of such an adjustment. Instead, the repeat party establishes uniform substantive conditions based on facts concerning its contractors as a group, including the average and distribution of their preferences. Some words require certain prepositions to precede them. If these words appear in a parallel structure, it is important to specify all the appropriate prepositions, as the first one may not apply to all elements. Here are some examples of the rule in action: Companies could achieve the same hedging strategy by trading in the foreign exchange markets, whether spot or forward. And indeed, as forex trading has developed over the past two decades, with digital platforms for trading virtually day and night, parallel lending has become rarer.
Still, they can be more convenient, especially if both parties plan to lend each other money directly. In the above sentence, the phrases of the participle -ing (“arrive early every day”, “regularly skip lunch” and “leave late every night”) are parallel. The main phrase – “applied in his new profession” – is not parallel to these participatory sentences. This is because the main verb is “applied.” The -ing sentences simply provide additional information about how Sal applied. It would distort the meaning of changing the sentence to this superficially parallel version: correlative expressions are words that tend to appear in pairs. Sentences with correlative expressions (both/and; not/but; not only/but also; either/or; first, second, third…) should also use a parallel structure. A simple rewrite can often correct errors in these types of sentences. Here are some examples of the rule in action: Suppose an Indian company has a subsidiary in the UK and a UK company has a subsidiary in India.
Each company`s subsidiary needs the equivalent of £10 million to finance its operations and investments. Instead of each company borrowing in its national currency and then converting the funds into the other currency, the two parent companies enter into a parallel loan agreement. [Important: By borrowing funds in its national currency, a parallel loan seeks to avoid currency risk – an adverse exchange rate variation between two currencies.] However, this is not the only unusual situation. The subject-verb correspondence can become a little more complicated if the subject is very long and complex. Faced with such situations, it is usually best to consider the entire complex subject sentence as a single subject, and then think about the kind of things it represents. A parallel loan is a four-party agreement in which two parent companies from different countries borrow money in their local currency and then lend that money to each other`s local subsidiary. Sometimes changing sentences can be between the subject and the verb of a sentence. This should not affect the subject-verb match. The first parallel loans were introduced in the UK in the 1970s to avoid taxes levied to make foreign investment more expensive.
Nowadays, currency swaps have mainly replaced this strategy, which is similar to a back-to-back loan. Parallel contracts deviate from the traditional contractual model in two respects. First, the obligations are not highly dyadic, since they are neither adapted to the two parties to a particular agreement nor understood by those parties by means of communication between them. On the other hand, the obligations are not determined at a specific moment in the conclusion of the contract. Parallel contracts should be interpreted differently from agreements that are more compatible with the classical model; In particular, the obligations of the repeat offender should be understood by reference to its recent practices and communication with one of the other parties in a particular environment. The risk of default is also a problem, as one party`s failure to repay the loan on time does not release the obligations of the other party. As a rule, this risk is offset by another financial arrangement or by an emergency clause included in the original loan agreement. When looking for parallel loans, the biggest problem companies face is finding counterparties with similar financing needs.
And even if they find suitable partners, the conditions desired by both may not match. Some parties will use the services of a broker, but the brokerage fee will then have to be added to the cost of financing. To find out which noun the verb should match, first cross out prepositional sentences or other descriptive sentences. Then focus on the verb and ask yourself, “Who or what is performing this action?” Reduce it to a subject and a verb and see if it sounds good. Authors must determine whether the subject of the sentence is singular or plural, and whether the subject is first person, second person, or third person. Once this is established, the correct conjugation of the verb can be used. A parallel structure that starts with clauses must continue with clauses. Switching to a different model or changing the voice of the verb (from active to passive or vice versa) interrupts parallelism.
The purpose of a parallel loan is to avoid borrowing money across national borders with possible restrictions and fees. Any company can certainly go directly to the foreign exchange (Forex) market to secure its funds in the right currency, but then it would be exposed to currency risk. An unclear sentence gets carried away and drifts arbitrarily and confusingly between unrelated subjects. Parallelism helps promote balance, emphasis, clarity and readability. .