What type of contract did Jenny and Kali enter into when they agreed to pay for their lunch?

Study for the Indiana 90-Hour Broker Course Exam. Master key concepts with multiple-choice questions, detailed explanations, and expert tips. Prepare thoroughly for success!

When Jenny and Kali agreed to pay for their lunch, they entered into an implied contract. An implied contract is formed based on the actions or circumstances of those involved rather than through explicit words or writing. In this scenario, both parties understood that by ordering and consuming the lunch, a mutual agreement was in place that they would pay for it. This agreement was not explicitly stated but was understood from the context of their actions—ordering food at a restaurant typically leads to the expectation of payment.

In contrast, a written contract would require formal documentation and signatures from both parties, which is not the case here. A verbal contract involves clear spoken agreements, which could also apply to this situation, but the nature of restaurant transactions commonly relies on the concept of implied contracts. A unilateral contract is defined by one party making a promise in exchange for an act from another party, which does not fit this scenario since both parties are engaged in a mutual exchange.

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