Chestnut Ltd. ,a Canadian firm produces mobile phones,laptops,and music players.The final assembly of these instruments is done at a firm called Abstract Track,which is based in Germany.The contract between the two firms requires the German firm to have the instruments operating before they are released to Chestnut Ltd.Which of the following has been entered into between the two firms?

Question

Quizplus · Accepted Answer

The contract between Chestnut Ltd. and Abstract Track, where the German firm is responsible for the final assembly and ensuring the functionality of the products before releasing them to Chestnut Ltd. is an example of a turnkey construction contract, where the responsibility for the completed product lies with a single contractor. The other options, such as licensing, coproduction or franchising, do not properly fit the scenario described.