Centre for Intelligent Systems and their Applicationsaward number R00429234287Chapter 1 looks at natural reasoning. It begins by considering the inferences that people make, particularly in terms of how those inferences differ from what is sanctioned by classical logic. I then consider the role of logic in relation to psychology and compare this relationship with the competence/performance distinction from syntax. I discuss four properties of natural reasoning that I believe are key to any theory: specifically partially, paraconsistancy, relevance and defeasibility. I then discuss whether these are semantic properties or pragmatic ones, and conclude by describing a new view of logic and inference prevalent in some contemporary writings. ...