The correct answer is Option (3) → tie down
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Tie down (Phrasal Verb): Means to restrict the freedom of action of (someone or something). This fits the context as the restrictions in the contract are limiting the company's freedom to act.
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Tie up (Phrasal Verb): Means to secure with a rope, or to occupy (a person or resources) so as to prevent their use for anything else (e.g., The capital is tied up in inventory).
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Tie on (Phrasal Verb): Means to attach by tying.
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Tie with is generally used in the context of achieving the same score as someone else in a competition (e.g., They tied with the opposing team).
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