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For example If A opens a fancy shop opposite B fancy shop and Sales in Bs fancy shop drops
causing loss to B, and if B files a suit in the court for the same then it is not actionable.
Relevant Case law
Glouster Grammar School Case (1410, Y.B.,11)
Facts of the case In this case the defendant started a school and collected reduced fee from the
student, as a result the students in plaintiff school took admission in defendant school. Due to the
competition the plaintiff has to reduce the fees from 40pence to 12pence, due to this plaintiff
suffered loss and sued the defendant. The court held that the plaintiff suit is not actionable on the
ground that his legal right is not infringed by the defendant.
In this case principle laid down is that every person has right to carry his own trade or profession
in competition with others and if as a result of healthy business competition his rival suffers a
loss then he is not entitled to recover any compensation. Here the defendant setting up his school
near the plaintiff school has exercised his legal right and therefore no action can be taken against
him.
Judgment The court held that the plaintiff is not entitled to any remedy since the defendant has
exercised his legal right by setting up the school without violating legal right.