Explanation:

Let’s break this down:

- Drawing cash from an ATM or buying at an auction both happen without anyone specifically saying, “Hey, let’s make a contract!”—but the contract still happens based on your actions and the situation.

- Here’s what each option means:

- Express Contract: The terms are spoken or written down. Think signing a rental agreement or verbally agreeing on a price.

- Implied Contract: This comes from the behavior of the parties, not from direct words. For example, sitting in a taxi means you agree to pay the fare—nobody needs to spell it out.

- Tacit Contract: This is a type of implied contract, but even less direct. It’s formed by conduct, not words or explicit action. The ATM example—just inserting your card and entering your PIN gets you cash. At an auction, raising your paddle is enough. No words exchanged.

- Unlawful Contract: This one’s simple; the contract itself is for something illegal, and it isn’t valid.

?? Correct answer: Option 3 – Tacit Contract

In both the ATM and auction scenarios, nobody speaks or writes out the agreement. It’s just understood by what happens. That’s exactly what a tacit contract is all about.