CS Executive · Jurisprudence, Interpretation and General Laws · Law of Torts
Meena runs a tea stall. A rival opens a stall next door and, by fair competition, takes away most of her customers, reducing her income. Meena sues for the loss. What is the likely outcome?
Meena fails because her loss is damnum sine injuria: actual harm without violation of a legal right. Fair competition is lawful, so no tort is committed even though her income fell.
- AShe succeeds because actual loss was caused, even without any legal right being violated
- BShe succeeds because competition is always a tort
- CShe fails because this is damnum sine injuria, loss without violation of a legal rightCorrect
- DShe fails because tort actions are allowed only for physical injury
Explanation
Loss caused by lawful competition does not infringe any legal right of Meena, so it is damnum sine injuria and not actionable. Actual loss alone is not enough in such a case. Tort is not restricted to physical harm, so the last option is wrong.
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