David and Sundram owned a consignment of wheat which was arrived from Philippine and placed in a warehouse of Fibrosa Security Sdn. Bhd. at Port Klang. They had entered into contracts to sell various quantities of this wheat to a number of buyers, including three (3) contracts of 250, 750 and 250 quarters respectively to a firm called Restu Ltd.. Restu Ltd. had taken away 500 quarters of the wheat and left the remaining 750 quarters with David and Sundram. Before Restu Ltd. took delivery of the remaining 750 quarters the warehouse was destroyed by fire. David and Sundram now claim the price of 1250 quarters of wheat from Restu Ltd. (Note that according to government policy all imported wheat should have gone through a procedure for grading purpose, and this has not been done).

Discuss the rules that explain the transfer of property under the sale of goods and consider who bears the risk of loss in the above situations.