Question 1

What gap in market practice did the contract-certainty initiative primarily target?

Accepted Answer

The gap between a signed placing slip and the fully agreed contract wording — Contract certainty addresses the historical practice of trading on an outline slip for months before the full wording was finalised — exactly the gap that creates ambiguity.

Question 2

Why is late-agreed wording a particular problem if a large loss occurs during the gap?

Accepted Answer

It can leave real ambiguity about exactly what terms apply, resolved under financial pressure rather than in advance — When wording is unresolved at the time of a loss, the parties must resolve open points about the exact terms while a real claim is already on the table — precisely what contract certainty aims to avoid.

Contract Certainty

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