Contract agreements via logic

We relate two contract models: one based on event structures and game theory, and the other one based on logic. In particular, we show that the notions of agreement and winning strategies in the game-theoretic model are related to that of provability in the logical model.Comment: In Proceedings ICE 2013, arXiv:1310.401

Contracts in distributed systems

We present a parametric calculus for contract-based computing in distributed systems. By abstracting from the actual contract language, our calculus generalises both the contracts-as-processes and contracts-as-formulae paradigms. The calculus features primitives for advertising contracts, for reaching agreements, and for querying the fulfilment of contracts. Coordination among principals happens via multi-party sessions, which are created once agreements are reached. We present two instances of our calculus, by modelling contracts as (i) processes in a variant of CCS, and (ii) as formulae in a logic. With the help of a few examples, we discuss the primitives of our calculus, as well as some possible variants.Comment: In Proceedings ICE 2011, arXiv:1108.014

Knowledge Representation Concepts for Automated SLA Management

Outsourcing of complex IT infrastructure to IT service providers has increased substantially during the past years. IT service providers must be able to fulfil their service-quality commitments based upon predefined Service Level Agreements (SLAs) with the service customer. They need to manage, execute and maintain thousands of SLAs for different customers and different types of services, which needs new levels of flexibility and automation not available with the current technology. The complexity of contractual logic in SLAs requires new forms of knowledge representation to automatically draw inferences and execute contractual agreements. A logic-based approach provides several advantages including automated rule chaining allowing for compact knowledge representation as well as flexibility to adapt to rapidly changing business requirements. We suggest adequate logical formalisms for representation and enforcement of SLA rules and describe a proof-of-concept implementation. The article describes selected formalisms of the ContractLog KR and their adequacy for automated SLA management and presents results of experiments to demonstrate flexibility and scalability of the approach.Comment: Paschke, A. and Bichler, M.: Knowledge Representation Concepts for Automated SLA Management, Int. Journal of Decision Support Systems (DSS), submitted 19th March 200

Contract-Oriented Computing in CO2

We present CO2, a parametric calculus for contract-based computing in distributed systems. By abstracting from the actual contract language, our calculus generalises both the contracts-as-processes and contracts-as-formulae paradigms. The calculus features primitives for advertising contracts, for reaching agreements, and for querying the fulfilment of contracts. Coordination among participants happens via multi-party sessions, which are created once agreements are reached. We present two instances of our calculus, by modelling contracts as processes in a variant of CCS, and as formulae in a logic. We formally relate the two paradigms, through an encoding from contracts-as-formulae to contracts-as-processes which ensures that the promises deducible in the logical system are exactly those reachable by its encoding as a process. Finally, we present a coarse-grained taxonomy of possible misbehaviours in contract-oriented systems, and we illustrate them with the help of a variety of examples

Temporal Aspects of Smart Contracts for Financial Derivatives

Implementing smart contracts to automate the performance of high-value over-the-counter (OTC) financial derivatives is a formidable challenge. Due to the regulatory framework and the scale of financial risk if a contract were to go wrong, the performance of these contracts must be enforceable in law and there is an absolute requirement that the smart contract will be faithful to the intentions of the parties as expressed in the original legal documentation. Formal methods provide an attractive route for validation and assurance, and here we present early results from an investigation of the semantics of industry-standard legal documentation for OTC derivatives. We explain the need for a formal representation that combines temporal, deontic and operational aspects, and focus on the requirements for the temporal aspects as derived from the legal text. The relevance of this work extends beyond OTC derivatives and is applicable to understanding the temporal semantics of a wide range of legal documentation

Political legitimacy and European monetary union: contracts, constitutionalism and the normative logic of two-level games

The crisis of the euro area has severely tested the political authority of the European Union (EU). The crisis raises questions of normative legitimacy both because the EU is a normative order and because the construction of economic and monetary union (EMU) rested upon a theory that stressed the normative value of the depoliticization of money. However, this theory neglected the normative logic of the two-level game implicit in EMU. It also neglected the need for an impartial and publically acceptable constitutional order to acknowledge reasonable disagreements. By contrast, we contend that any reconstruction of the EU's economic constitution has to pay attention to reconciling a European monetary order with the legitimacy of member state governance. The EU requires a two-level contract to meet this standard. Member states must treat each other as equals and be representative of and accountable to their citizens on an equitable basis. These criteria entail that the EU's political legitimacy requires a form of demoicracy that we call ‘republican intergovernmentalism’. Only rules that could be acceptable as the product of a political constitution among the peoples of Europe can ultimately meet the required standards of political legitimacy. Such a political constitution could be brought about through empowering national parliaments in EU decision-making