Definition: An agreement presumably intended among those involved, but not explicitly in writing. A supervisor's promise, a statement in an employee handbook, and an employer's historical action (e.g., always issuing severance pay) are each examples of what might constitute an implied contract. Implied contracts might even override signed contracts. However, whether or not a binding, implied contract existed and was breached is typically up to the interpretation of the courts or arbitrators.
Also Known As: Implied-in-Fact Contract