Implied contract terms: a default contract term invented by common law judges and read into an employment contract when the written terms of the contract (if any) don"t address the specific issue addressed by the implied term. There"s 2 methods for implying contract terms: implication by fact, implication by law. Business efficacy test: an approach used by common law judges to justify implication of a contract term on the basis that the term is necessary in order to make the contract effective. Officious bystander test: an approach used by common law judges to justify implication of a contract term based on the presumed intention of the parties. The idea is that a contract term is implied if it would be obvious to uninterested bystander that both parties intended the term to be part of the contract. Contract terms implied in fact : a term implied into a contract by a judge that reflects the presumed intentions of the parties.