Principle: 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 unauthorized, but a necessary consequence of the exercise of defendant’s own lawful rights, no action should lie. Facts: 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 patronizing the NS. Because of the competition, ES had to reduce its fees. ES filed a case against NS saying that NS had caused it (ES) financial loss and, thus, claimed compensation. Which of the following derivations is correct?

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Principle: 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 unauthorized, but a necessary consequence of the exercise of defendant’s own lawful rights, no action should lie. Facts: 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 patronizing the NS. Because of the competition, ES had to reduce its fees. ES filed a case against NS saying that NS had caused it (ES) financial loss and, thus, claimed compensation. Which of the following derivations is correct?






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