The document discusses speech acts and indirect speech. It begins with an example of two friends interacting where one compliments the other's shirt and the other responds by saying the shirt is old. This represents how context is important for appropriate language use. The document then discusses how pragmatics helps understand how context determines language interpretation, unlike semantics which focuses on meaning. It introduces speech acts as social functions language allows, like compliments, questions, commands. Some speech acts are performative, where speaking the words performs the action. Most language use is indirect speech, where context helps understand implied meanings, for reasons like politeness and plausible deniability. Several examples are provided and analyzed to illustrate this.