Clarke v Dunraven, Tha Satanita [1897] AC 59

Defendant and Plaintiff entered their yachts for a club race and signed an agreement to be bond by the club rules. One of these was that if a yacht caused damage by breaking any other rule, it would pay for “all the damage”.

Defendant’s boat broke a club rule and caused damage to Plaintiff’s boat.

HL said that the parties had entered a contractual obligation not to disobey the club rules, making Defendant liable to Plaintiff for damage from breach of contract and fully liable, whereas in a non-contractual obligation the amount to be paid would have been limited.

• It is not clear how there was a contract between Defendant and Plaintiff (unlike between Defendant and the club) and Lord Herschel merely says that this was evident from their partaking in the race