GHC does not commit to instance (C), because in a particular
call of <literal>f</literal>, <literal>b</literal> might be instantiate
to <literal>Int</literal>, in which case instance (D) would be more specific still.
-So GHC rejects the program. If you add the flag <option>-XIncoherentInstances</option>,
+So GHC rejects the program.
+(If you add the flag <option>-XIncoherentInstances</option>,
GHC will instead pick (C), without complaining about
-the problem of subsequent instantiations.
+the problem of subsequent instantiations.)
+</para>
+<para>
+Notice that we gave a type signature to <literal>f</literal>, so GHC had to
+<emphasis>check</emphasis> that <literal>f</literal> has the specified type.
+Suppose instead we do not give a type signature, asking GHC to <emphasis>infer</emphasis>
+it instead. In this case, GHC will refrain from
+simplifying the constraint <literal>C Int [Int]</literal> (for the same reason
+as before) but, rather than rejecting the program, it will infer the type
+<programlisting>
+ f :: C Int b => [b] -> [b]
+</programlisting>
+That postpones the question of which instance to pick to the
+call site for <literal>f</literal>
+by which time more is known about the type <literal>b</literal>.
</para>
<para>
The willingness to be overlapped or incoherent is a property of