Before revision:  Applying tools from Conditional Analysis to the case of linear contracts we show that most results known in the literature for very specific instances of the problem carry over to translation invariant and time-consistent utility functions in very general probabilistic settings  .
After revision:  Applying tools from Conditional Analysis to the case of linear contracts we show that most results known in the literature for very specific instances of the problem carry over to translation invariant and time-consistent utility functions in very general probabilistic settings . However, we find that optimal contracts must in general make use of derivatives for compensation .