In this paper we start from the assumption that in a metaphor, or an analogy, some terms belonging to one domain (source domain) are used to refer to objects other than their conventional referents belonging to a possibly different domain (target domain). We describe a formalism, which is based on the First Order Predicate Calculus, for representing the knowledge structure associated with a domain and then develop a theory of Constrained Semantic Transference [CST] which allows the terms and the structural (...) relationships of the source domain to be transferred coherently across to the target domain. We show how metaphors and analogies can be characterized in CST in such a way that many of their cognitive properties con be explained.We then propose a theory of Approximate Semantic Transference [AST] which is a computational version of CST and is derived from it by replacing the coherency requirement with approximate coherency. We show how AST can be used as a basis for designing models of cognitive processes involved in comprehending metaphors and analogies. (shrink)