ACCA LW · Chapter 3 · Question 3 of 10
A court is asked to imply a term into a commercial contract on the basis of the facts. Which test did the court use in The Moorcock?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Whether the term is necessary to give business efficacy to the contract
Explanation
The Moorcock established the business efficacy test: a term will be implied if it is necessary to make the contract work as the parties must have intended. The related officious bystander test (Shirlaw v Southern Foundries) asks whether the term is so obvious that it goes without saying. Courts will not imply terms merely because they would be reasonable or fair.
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