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Clarke v. The Earl of Dunraven and Mount: The Satanita (1896) HL The Mudhook Yacht Club announced a regatta scheduled for July 1894 on the Clyde. Participants were required to sign a letter addressed to the secretary of the Club, consenting to adhere to the regulations of the Yacht Club Association. In conjunction with other yacht owners, the two parties, each having executed a letter, registered their yachts, The Satanita and The Valkyrie, for a race. During the race, The Satanita collided with and sank The Valkyrie. The inquiry pertained to the enforceability of the Yacht Club Association's regulations concerning the compensation owed by the owner of the offending vessel to the proprietor of the damaged Valkyrie. The regulations could be upheld.
Per Lord Herschell:
I cannot entertain any doubt that there was a contractual relation between
the parties to this litigation. The effect of their entering for the race, and
undertaking to be bound by these rules to the knowledge of each other, is
sufficient, I think, where those rules indicate a liability on the part of the
one to the other, to create a contractual obligation to discharge that liability.
Per Lord Herschell:
I cannot entertain any doubt that there was a contractual relation between
the parties to this litigation. The effect of their entering for the race, and
undertaking to be bound by these rules to the knowledge of each other, is
sufficient, I think, where those rules indicate a liability on the part of the
one to the other, to create a contractual obligation to discharge that liability.
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