1. XYZ Ltd is a manufacturer of bagged wheat, situated in Walu Bay, Suva. Their agent is Zee Ltd situated in Levuka. Zee Ltd takes orders on behalf of XYZ Ltd from retail outlets in Levuka for bagged wheat and then orders the bagged wheat from XYZ Ltd in Suva. XYZ Ltd pays 5% commission to Zee Ltd for any order made, once Zee Ltd delivers the consignment to the stores and pays XYZ Ltd the money. Zee Ltd receives payments from the stores on delivery of the bagged wheat.

1. In March 2016, Zee Ltd received orders from Super retailers in Levuka for 500 bags of wheat, and another order from James Shop for 100 bags of wheat. Zee Ltd then ordered 600 bags of wheat from XYZ Ltd who shipped the wheat on board the ship "Eliza" bound for Levuka on the 10th of March 2016. The ship struck a reef when entering the harbour and sank. All the bagged wheat had been placed in one box on the ship and it sank with the ship. James Shop and Super Retailers have now brought an action against XYZ Ltd for non-delivery.

Advise XYZ Ltd of whether they are liable to supply another consignment of wheat or the property and risk in the 600 bags of wheat had passed to the buyers when the goods were shipped on board the "Eliza". Cite relevant sections of the Sale of Goods Act and the rules for transfer of property.

Post your answers to the discussion forum for this week.