In this paper we give a local classification of the integral curves of implicit differential equations where F is a smooth function and p = dy/dx, at points where Fp = 0, Fpp ≠ 0 and where the discriminant {(x, y) : F = Fp = 0} has a Morse singularity. We also produce models for generic bifurcations of such equations and apply the results to the differential geometry of smooth surfaces. This completes the local classification of generic one-parameter families of binary differential equations (BDEs).