CLAT 2014 Question Paper with answer key for online practice

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Question : 164 of 200
 
Marks: +1, -0
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 unauthorised , but a necessary consequence of exercise of defendant's own lawful rights, no action should lie.
Facts:
There was as 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 filled 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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