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The first step to answering this question is to define what is meant by express and implied terms in the context of a contract A contract contains a number of terms which in effect are the obligations of the contract Express terms are statements actually made by one of the parties either in writing or orally They do not always make up the whole contract and there may be other terms which can be implied into it The basic principle of implied terms is that a term will be implied where it is necessary in order to bring the contract into line with the presumed intention of the parties This is not to say that the courts are in the business of making reasonable deals for contracting parties but rather that they have the power to supplement or complete an incomplete agreement A term is not implied because it is reasonable to imply it rather once it has been decided to imply a term the content of that term must be reasonable The golden rule is that implied terms cannot be read in where this would be inconsistent with the express terms of the agreement An early case which is often cited is that of The Moorcock 1889 CA in which the court held that there was an implied term in the contract between the wharfowners defendants and shipowners plaintiffs that the river bottom at the jetty where the Moorcock was moored was so far as reasonable care could make it in such a condition as not to endanger the ship The ship was indeed damaged at low tide and although there was no express term that the berth would be safe the shipowners were awarded damages An implied term can evolve into a rule of law if it has become well settled by a series of judicial decisions in similar circumstances This is evident in
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