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  • There was an established school (ES) in a particular locality. Subsequently, a new school (NS) was set up in the same locality which charged lower fees, on account of which people started patronisi

There was an established school (ES) in a particular locality. Subsequently, a new school (NS) was set up in the same locality which charged lower fees, on account of which people started patronising the new school. Because of the competition, ES had to reduce its fees. ES filed a case against NS saying that NS had caused it financial loss and, thus, claimed compensation.

Option: 1

Since no legal right of ES has been violated, therefore, as such, no compensation could be granted.


Option: 2

Since damage is caused to ES, therefore, it should be awarded compensation.


Option: 3

ES should be awarded compensation as opening of school in competition is not good.


Option: 4

No compensation could be granted, as reduction in fees is good for the public.


Answers (1)

best_answer

Damage without the violation of a legal right is not actionable in a court of law. If the interference with the rights of another person is not unlawful or unauthorised, but a necessary consequence of the exercise of defendant’s own lawful rights, no action should lie. Since no legal right of ES has been violated, therefore, as such, no compensation could be granted. Hence the correct option is a. 

Posted by

vishal kumar

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