Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. In return, the company is willing to pay a percentage of revenue to the agro-based industry. In this case, which of the following contractual alliances should be adopted by Sepia?

Question

Quizplus · Accepted Answer

A licensing agreement is appropriate in this scenario because Sepia Inc. wants to gain permission to use the plantations owned by the agro-based industry for testing its products. In a licensing agreement, the owner of a resource (in this case, the agro-based industry) allows another party (Sepia Inc.) to use that resource under specific conditions, such as sharing a percentage of revenue, which aligns with the described arrangement.

Sepia Inc, a Fertilizer Company, Needs Permission to Test Its New