Hello, just curious, was I supposed to encounter what I presume to be my rival so early in the game and was I meant to lose given the power difference? 

Can't remember name but it was that guy competing for the ace title from the academy. Met him shortly after leaving the castle town once I was done getting quests from the board in the small village "Themese?". Sorry for the names but anyway, it was that village with the small demon quest from the paladin guy.

While walking around the middle of two houses there I think, he just appears out of nowhere and with his stats and mine, I can't really seem to defeat him. I can avoid him though by not going to the village at all.