Young yachting captain Tim Whalen (Rob Lowe) is having an affair with Brooke Morrison (Kim Cattrall), the wife of his boss, Granger Morrison (Brian Davies), in the upscale town of Southampton (town), New York, Long Island. Tim is the new captain of Granger's racing sailboat ''Obsession''. Young heiress Olivia Lawrence (Meg Tilly), following the recent death of her mother, returns home to Southampton after graduating from college. At a party, Olivia is introduced to Tim, who asks her to dance. Impressed with her knowledge of sailing, Tim asks her to go sailing with him, and she accepts.