A passenger gives instructions to a taxi driver regarding their destination. What type of agreement have they entered into?

The situation described involves a passenger providing specific directions to a taxi driver about their destination, which constitutes an implied agreement. In this context, an implied agreement arises naturally from the interactions and conduct of the parties involved, even if no formal or written contract exists. By getting into the taxi and communicating their destination, the passenger and taxi driver establish an understanding that the driver is to provide transportation to the specified location in exchange for a fare.

The key element of an implied agreement is that it is formed through the actions and behavior of the parties rather than through explicit verbal or written terms. The taxi driver’s acceptance of the passenger's request implicitly conveys consent to the terms of the journey, effectively completing the agreement without it being formally articulated.

In contrast, the other options pertain to different types of contractual relationships. Designated representation and fiduciary agreements typically involve more formal responsibilities and obligations than what is expressed in a simple taxi ride. Limited agency denotes a specific legal relationship that is also not applicable in this straightforward transactional context, where the focus is merely on transportation rather than on the complexities of agency law. Therefore, the passenger and the taxi driver have indeed entered into an implied agreement based on their mutual understanding and interaction.