An implied contract may become binding when management urges an employee to leave another organization by promising higher wages and benefits and then not following through with these conditions after the person has been hired.

Question

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This is an example of promissory estoppel, where an employer makes a promise that induces an employee to take action, and then fails to fulfill that promise. It can create a binding legal obligation even in the absence of an explicit contract.

An Implied Contract May Become Binding When Management Urges an Employee