Some non-standard situations
Multi-partite contracts
These arise where a number of people make identical agreements with one
person – they may then be deemed to have made them with each other. In
Clarke v Dunraven (1897), a yacht race was held where competitors
entered by a letter to the yacht club secretary. In these letters each
competitor agreed to abide by club rules, which included an obligation to
pay all damages caused by fouling. The Satanita manoeuvred and sank the
Valkyrie. Clarke, owner of the Valkyrie, sued Dunraven, owner of the
Satanita, for damages. Dunraven claimed that he was not bound by any
contract with Clarke, and therefore need not pay.
The House of Lords held Dunraven was bound by entering the race and
making an individual agreement with club regarding each other
compeititor. Each had accepted the rules on entry,and would be deemed to
have made them regarding each other. Clarkes Claim was therefore upheld.
Dealing with a machine
When dealing with a machine, it cannot really be possible for the customer
to offer to buy and the machine to decide to accept! Therefore there has to
be an exception to the normal shopping ‘rules’. In such cases the owners of
the machine are said to hold it in readiness for use, and thus form an offer.
The buyer accepts by activating the machine in some way.
36 Contract law
Do you think that this is a sensible decision? It is quite remarkable in the light
of the theory which lies behind the law of contract. In the case, those who
had entered the competition had not discussed any of the details of the
contract with any other competitor, but were deemed to have made a
contract with each of them.Figure 2.1