Well, it's clearly pathological in some sense, but the space of actions to be (pre)ordered is astronomically big and reflective endorsement is slow, so you can't usefully error-check the space that way. cf. Lovecraft's comment about "the inability of the human mind to correlate all its contents".

I don't think it will do to simply assume that an actually instantiated agent will have a transitive set of expressed preferences. Bit like assuming your code is bugfree.