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#
#  Standard Definitions for Ricardian Contracts
#  $Id: standard.txt,v 1.4 2003/07/18 22:01:26 iang Exp $
#
#  This form of agreement is sometimes known as a Ricardian
#  Contract, a form developed by Systemics to provide a
#  mechanism to accurately express any form of contractual
#  value suitable for Internet payments.
#
#  A Ricardian Contract may incorporate these standard
#  definitions by including in [definitions]:
#
#    definitions_include = <hash>
#
#  For location of the latest file, see:
#
#    <http://www.webfunds.org/ricardo/contracts/standard.txt>
#
#  Replace 'standard.txt' with the hash for the referenced
#  version.
#
#  The Ricardian canonical SHA1 message digest ("hash") is
#  calculate with no trailing whitespace, and line endings
#  calculated as \n\r.
#
#  More information on Ricardian contracts can be found at
#
#    <http://www.systemics.com/docs/ricardo/>
#

definitions_comment = *
{
  Ricardian Contracts include comments which are lines that
  begin with '#' or with ';' as seen at the top of this file.

  Comments are of explanatory purpose only and are not
  intended to form part of the clauses of the contract.

  Where a clause disagrees with a comment, the clause rules.
}

definitions_issuer = *
{
  The Issuer is the legal signatory to the master contract.
  His digital signature is affixed to the bottom of the
  contract in OpenPGP form.

  The Issuer is ultimately responsible for the performance
  of the contract.  The Issuer is responsible for appointing
  the governance roles of Mint, Operator, Manager, Repository,
  and others as necessary.

  The Issuer is identified in the [entity] section.
}

#
#  Following financial cryptographic convention, the
#  Issuer is sometimes known as Ivan, and is masculine.
#  The User is sometimes known as Alice, and is feminine.
#  Additional users may include Bob and Carol.
#

definitions_user = *
{
  The User is the holder of units of a contract.  The User
  becomes legal signatory to a contract when she accepts
  a payment in the contract.  Her digital signature is
  provided in a transaction facilitated by her software.
}

#
#  One such software program is WebFunds which can be
#  downloaded for free from a number of sites including
#  <http://www.webfunds.org/>
#

definitions_operator = *
{
  The Operator is responsible for the technical hosting and
  management of the Ricardian Issuance Server, which manages
  the accounting of the Users' units, from signed requests
  from the User.

  The Operator is also responsible for enabling the Mint
  account, under instruction from the Issuer.
}

definitions_mint = *
{
  The Mint consists of a special account that may create value
  where before there was none, and a person, natural or legal,
  who is responsible for that account.  The Mint is appointed
  by the Issuer, and is bound to only create value under
  instruction by the Issuer, and in accordance with the terms
  of the contract.
}

definitions_float = *
{
  Float is the total quantity of units outstanding, and is
  created by the Mint.
}

definitions_manager = *
{
  A Manager is appointed by the Issuer to control issued
  but undisbursed value.  This value is transferred to the
  Manager's account from the Mint account, or is returned
  by Users.  The Manager holds day-to-day balances of value.
}

definitions_backing = *
{
  "Backing" is defined as the sum total of assets that make
  units of this contract valuable to Users.  Any given issue
  may include more or less elements that add up to give an
  issue backing.  Anything of value, including intangibles,
  may be considered to be an element of backing.

  See [conditions] for details of a given issue's backing.
}

definitions_reserves = *
{
  "Reserves" are defined as underlying assets that have the
  same or similar denomination and value as the digital issue,
  and are escrowed for the sole purpose of maintaining the
  value of the digital issue.

  Reserves are an element of backing.  Any given issue may
  or may not include reserves, as defined in [conditions].
}

#
#  This is the end of the Standard Conditions.
#
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