The Moorcock (1889) 14 PD 64

The claimant moored his ship at the defendant's wharf on the river Thames. The river Thames is a tidal river and at times when the tide went out the ship would come into contact with the river bed. The ship became damaged due to uneven surfaces and rocks on the river bed. The claimant sought to claim damages from the defendant and the defendant argued that there was no provision in the contract warranting the condition of the river bed.

Held:

The court implied a term in fact, that the river bed would be safe for mooring. The court introduced the business efficacy test ie the term must be necessary to give the contract business effect. If the contract makes business sense without the term, the courts will not imply a term.

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