How might an employer create an “implied-in-fact term,” and how could a failure to follow such policies when terminating an employee create a breach of the contract?

Case Analysis

Case Questions

Based on Guz, can the implied covenant of good faith and fair dealing apply to any
conditions not actually stated in a contract? In other words, can the covenant apply to
anything beyond that which is actually stated in an employment contract? If not, is there
no implied covenant as long as someone is at–will without a contract?

Explain the distinction between the court’s discussion of the covenant of good faith and
fair dealing and the possibility of an implied contract term.

How might an employer create an “implied–in–fact term,” and how could a failure to follow
such policies when terminating an employee create a breach of the contract?