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In this book the authors present new results on interpolation for nonmonotonic logics, abstract (function) independence, the Talmudic Kal Vachomer rule, and an equational solution of contrary-to-duty obligations. The chapter on formal construction is the conceptual core of the book, where the authors combine the ideas of several types of nonmonotonic logics and their analysis of 'natural' concepts into a formal logic, a special preferential construction that combines formal clarity with the intuitive advantages of Reiter defaults, defeasible inheritance, theory revision, and epistemic considerations. It is suitable for researchers in the area of computer science and mathematical logic.