licensing mode of entry is a contractual agreement granting a firm the right to use any kind of expertise of another firm in exchange for a fixed sum plus a royalty. Therefore option A is correct.
Another phrase that is occasionally used in place of "contract" is "contractual arrangement." A legally enforceable agreement between two or more parties to perform, or refrain from doing, one or more items mentioned in the contract is hence referred to as a contractual agreement. Legal consideration, legal competence to enter into a contract, unanimous consent from all parties, and a legal subject matter are all requirements for a contract to be enforceable.
The phrases "contract," "agreement," and "contractual agreement" are sometimes used interchangeably. Although the option to use the terms "contract" or "contractual agreement" has no legal ramifications, using the phrase "agreement" can have legal ramifications.
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