What it means
An implied term is one that the parties did not expressly state but which the law treats as part of the contract. Terms can be implied by statute, by past dealings, by custom in an industry, or by the courts to give a contract 'business efficacy' (to make it work as the parties obviously intended). In Australia, the Australian Consumer Law implies powerful 'consumer guarantees' into contracts for goods and services — for example, that goods are of acceptable quality. These statutory guarantees usually cannot be contracted out of.
How it's used
Even though the contract said nothing about quality, an implied term under the Australian Consumer Law required the new fridge to actually work.