Question 1: What is the difference between a sale and an agreement to sell? What is the significance of the distinction?

A sale is occurred when goods/properties are passed on to buyer from seller. In agreement to sell is a contract in which seller agreed to sell goods/properties after fulfilling certain condition, meeting all the terms or elapse of time associated with the contract. It is significant to make a distinction between sale and agreement to sell. In agreement to sell the seller retain the right of ownership until it becomes a sale and goods/properties is passed on to the buyer. In sale there is no agreement involved and goods/property is transferred to the buyer. However, sale involve bargain, counter offer before it actually taken place. Agreement to sell include a contract on which both parties have to comply and fulfil the terms and condition mentioned in the contract.

Question 2:

a) Using relevant the relevant legislation supported by case law, decide which of the people involved in the case has title to the car.

An agent is a person who sells or accepts orders/product/goods on behalf of its principal in the ordinary course of business. It is known as agency relationship where agent performs certain task on behalf of principal and form a contract between third party and principal. The principal has to comply with.

John (Principal) and Sam (Agent)

In this case, John is principal who asks Sam (agent) to sell his car for 8000. There is an express agreement between John and Sam. John expressly told to Sam to sell his car for 8000. As an agent, Sam has the responsibility to comply with the terms of John. However, it was not in the notice of John that Sam is in financial difficulties and later he terminates the contract over the phone. When John went to see Sam (agent) to get his car back, then he knew that Sam has sold his car for 7000 and is not coming at work. it is not clear in the case that Sam has notice message over the phone left by John. Ignoring the fact that Sam did not read the message but he still does not comply with the terms and condition and void agency agreement by selling at lower price for 7000 and also defraud John by not taking consent for selling at lower price. As an agent Sam owe John 8000. Jennifer the buyer of car does not know about any terms and condition between Principal and agent. Sam sale to Jenifer is a valid sale and she has paid in cash for car. (Pearson v Rose and Young 1951)

Jennifer and Muhammed

Jennifer later sold her car to Muhammed in return for a cheque which has been dishonoured. The contract become void and Jennifer informed police about the cheque and she is till unpaid. As it was in the case of Car and Universal Finance Co Ltd V Caldwell (1965) where a contract can be voided if the seller takes reasonable steps and Jennifer took the right steps. According to the section 38-1, the goods/property will not be transferred until the cheque is valid. So, in Jennifer and Muhammed situation, she is still owner of the car until she gets paid in cash or valid cheque.

Mohammed and Benjamin

Section 12 of sale states that seller pass on title of goods to the buyer for something in return. The sale between Jennifer and Muhammed is void so Muhammed does not hold ownership right. The sale between Muhammed and Benjamin is void unless Muhammed pay cash to Jennifer or return sale payment to Benjamin.

b) Discuss in which way the Sales of Goods Act would assist those people who could not claim ownership.

A contract of sale of goods is a contract by which the seller transfers or agrees to transfer the property in goods to the buyer for a money consideration, called the price. Sam sold car to Jennifer for 7000. It meets the requirement of sale and sale is void.

Subject to this Act, where goods are sold by a person who is not their owner, and who does not sell them under the authority or with the consent of the owner, the buyer acquires no better title to the goods than the seller had, unless the owner of the goods is by his conduct precluded from denying the seller's authority to sell. Under sales of Goods, Jennifer is still the right full owner of the car unless Muhammed pay her the he owes. Benjamin is not aware of the situation and my find himself in middle of nowhere, unless Muhammed clear him the situation.

Question 3. A) Advise Mr Johnson on whether his invention is capable of being patented.

The requirement for the registration of drug patent is very clear. Medico Ltd, Director of research Mr. Johnson needs to fulfill the requirements of Patent Act 1977. The requirements for the registration are following

1) The invention must be new. 2) The invention must follow and based on inventive steps 3) The invention must have industrial application capability 4) The grant of patent registration should not be disqualified by subsection (2), (3) and (4).

The patent can be disqualified for the registration and cannot be patented according to subsection 2, if the patent is

A discovery, scientific theory or mathematical method; A literary, dramatic, musical or artistic work or any other aesthetic creation whatsoever; A scheme, rule or method for performing a mental act, playing a game or doing business, or a program for a computer; The presentation of information;

According to Section 3 states that a company patent shall not be granted where the invention could result in exploitation and against the public policy or morality. In case of Mr. Johnson Cancer drug, the drug is invented to benefit the patient and it is not against public policy and morality.

Section 4 A deals with surgery or therapy and method to diagnose but Mr. Johnson drug is invented for treatment so it is does not come under exclusion clauses of Section 4 A.

In case of Mr. Johnson cancer drug it complies with above mentioned requirement and does not come under exclusion clauses of Patent Act 1977.

(b) Advise Mr Johnson on who has ownership of the patent and whether he is likely to receive any commission for his invention.

As per Patent Law 1977, section 39 states the right of employee and employer and clarifies the situation by stating that any invention by employees belongs to employer. According to the section 39-1-a, where the invention is in course of employee normal duties. The duties are allocated to employee to it normal part of duties. The invention belongs to the employer.

In this case, it is clear that Mr. Johnson is employee of Medico Ltd and he is development director of research. Under the Patent Law 1977, section 39 which are related to rights to employees in invention. Mr. Johnson does not hold ownership right of the patent. the

invention belongs to the company Medico Ltd and it is part of employee duties to invent new drugs. Commission to Mr Johnson

Section 40 of Patent Law 1977 states the court may intervene and decide whether employee should be compensated, however the compensation depends on the benefits of invention obtained by employer and the employee should be compensated. Patent Law does not provide any guidance on commission to the employees for invention. In case of Medico Ltd. Mr. Johnson could receive compensation for invention of new cancer drug as per section 40; the case does not provide any information about commissioning to employees for new inventions. It is very unlikely that Mr. Johnson will receive any commission for new invention. (iii) Advise Mr Johnson on whether his drug, Beecham Cancer Fighting Drug is capable of being registered as a trade mark.

In order to register the trade mark, Medico ltd has to comply with all the requirement lay down by Trade Mark Act 1994. The product trade mark cannot be registered and a trade market cannot be registered if it does not meet the requirement lay down by section 1-1, secondly, the trade mark is devoid due it distinctive character and the trademarks is customary in the language or established practices of trade.

The law further states that trade mark can be registered which is resulted from goods themselves and also if it is contrary to public policy or to deceive public. Provided that, a trade mark shall not be refused registration by virtue of paragraph (b), (c) or (d) above if, before the date of application for registration, it has in fact acquired a distinctive character as a result of the use made of it. A trade mark shall not be registered if or to the

extent that its use is prohibited in the United Kingdom by any enactment or rule of law or by any provision of Community law. A trade mark shall not be registered in the cases specified, or referred to, in section 4 (specially protected emblems). A trade mark shall not be registered if or to the extent that the application is made in bad faith. 1994 law also specifically restrict the registration of trade mark which contain royal arms, royal crown, and family member of royal family or royal family authorisation words. Furthermore it also put restriction on registration of such trademarks which consist of national flag or flag of England, Wales, Scotland, northern Ireland or isle of Man. A Trade mark cannot be registered if it is identical to earlier trademarks that already existed in the market and registered identically or similar to it. Medico Ltd has to check the market before registration of its trade mark. If a similar or identical trader mark already exists in the market then it has to change the name of drug.

iv) Advise Mr Johnson on whether the scent of his drug is also capable of being registered as a trade mark.

According to the Trade Mark Act 1994, it has explained what trade mark is. As per the Trade Mark act, trade mark means a sign which has the capability to represent graphically and can distinguish itself from others. It could be consist of words, such as personal name, letters, numerical, design or shape of goods and their packaging.

A collective mark is a mark distinguishing the goods or services of members of the association which is the proprietor of the mark from those of other undertakings.

A certification mark is a mark indicating that the goods or services in connection with which it is used are certified by the proprietor of the mark in respect of origin, material, and mode of manufacture of goods or performance of services, quality, accuracy or other characteristics

The scent of drug does not meet the definition and come under the categories of trademarks that can be registered. As it can affect the invention of other drugs which might have the same scent after composition.

V)

In the event that Mr Johnson decides not to register the mark but uses it in relation to the drug, please advise Mr Johnson on his position and whether he would be free from any future liabilities and or possible claims.

In case of Mr Johnson decided not to register the mark Trade Mark Act 1994 clearly mention it as offence and the person is liable to fine which is not exceeding level 3 on the standard scale.