In contest surpass inaccurate people (7)
I believe the answer is:
outrace
'in contest surpass' is the definition.
(to outrace is to surpass in a racing contest)
'inaccurate people' is the wordplay.
'inaccurate' becomes 'out' (eg a calculation might be 'out').
'people' becomes 'race' (people can mean a national group or race).
'out'+'race'='OUTRACE'
I've seen this clue in The Times.
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