Do I have to avoid contact even if I have right of way?

Yes, in most cases. If reasonably possible, a boat shall avoid contact with another boat, not cause contact between boats, and not cause contact between a boat and an object that should be avoided.

A right-of-way boat, or one sailing within the room or mark-room she is entitled to, need not act to avoid contact until it is clear that the other boat is not keeping clear or giving room or mark-room.

A boat not racing can only be penalised for breaking rule 14 when the incident resulted in injury or serious damage. A boat that causes injury or serious damage has, as her penalty, to retire (rule 44.1(b)).

Source: Racing Rules of Sailing 2025-2028 with Australian Sailing prescriptions, rules 14, 44.1 and the Part 2 preamble.