Putting a bold disclaimer at the front of the handbook that says it is not a contract and requiring employees to sign the disclaimer is an attempt by businesses to protect themselves from being found to create an implied contract.
The implied contract refers to a legal obligation occurring due to the action, behavior, or situation of the parties involved in that contract. It is considered legal just like any other contract created legally and voluntarily between the parties.
The implied contract does not require any verbal or written confirmation between the parties involved in it. In some circumstances, it is difficult to enforce an implied contract due to a lack of evidence.
The underlying principles in an implied contract are based on fair play, where no party gets an undue advantage or benefit at the loss of the other party.
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