In the paper there is presented the argument for the situational paradigm of theory of language. In comparison to the nominativistic semantics it is argued in the paper that the propositional semantics is a better tool of explaining various speech acts in which the principle of compositionality is collapsed. In the paper there are also described referential mechanisms of metaphorical speech acts. In accordance with these mechanisms the metaphorical status of speech acts is determined by the collapse of Fregean referential compositionality of speech acts. In the paper there are constructed two notions of compositionality. First of them may be called classical Fregean concept of compositionality which establishes a semantic correlate of a complex speech act on a functional basis of semantic correlates of constituents of a complex speech act. According to the second notion of compositionality, correlates of constituents of a complex speech act are recursively determined by a correlate of a complex speech act. Mataphorical speech acts possess such a property that correlates of their constituent expressions are determined in processes of de-coding by recursive compositionality functions. Maximal metaphors are speech acts in which recursive as well as Fregean compositionality collapse. In the paper it is argued that the traditional nominativistic semantics is not able to explain communicational functioning of metaphorical speech acts. That is why the conclusion of the paper resolves itself to the thesis that the situational semantic paradigm which should base on recursive notion of compositionality, is better than the nominativistic paradigm.
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