It is notable because it stands as an example of a case which does not fit the typical pattern of offer and acceptance that English law purports to require to find agreement.

Lord Dunraven, owner of the Valkyrie II, and A.D. Clarke, owner of the American vessel Satanita, each entered their yachts in a race in the Firth of Clyde organised by the Mudhook Yacht Club.

On 5 July 1894, the Satanita collided with Lord Dunraven's yacht, injuring a crewmember ("The unfortunate man was a seaman named Brown, one of whose legs was broken"[1]) and causing it to sink.

The Court of Appeal held that there was a contract for the owner of The Satanita to pay Lord Dunraven compensation.

Lord Esher MR held that a contract had been formed, since "one of the conditions is, that if you do sail for one of such prizes you must enter into an obligation with the owners of the yachts who are competing, which they at the same time enter into similarly with you… If that is so, then when they do sail, and not till then, that relation is immediately formed between the yacht owners".