Alice Applegard of Alice-in-Wonderland Bargains carries on business as a used-furniture dealer. She would occasionally purchase all of the furnishings in a person's home if the person was leaving the country or moving a long distance.

Mr. Ganhao, recently a widower, called Alice and indicated that he intended to sell his home and furniture as he was getting ready to move back to Portugal, his native country. Alice expressed an interest in purchasing his furniture, and an appointment was arranged.

When Alice arrived, Mr. Ganhao took her to each room and indicated the furniture he intended to sell. Alice listed the different items by groups, such as "all chairs and table in kitchen," or "bedroom suite in front bedroom." When the list was complete, Alice offered $5,500 for the whole lot. Mr. Ganhao agreed, and Alice added to the bottom of the list: "Agreed price of all above furniture, $5,500." Both parties signed the document.

Two days later Derrick Stone arrived with $500 in cash and a certified cheque in the amount of $5,000. He also had a large truck to load the furniture into. He told Mr. Ganhao that Alice Applegard had some unexpected expenses, so Alice didn't have the money to buy the furniture. Derrick said that he was going to buy it from him for the same amount of money that Alice would have paid. Mr. Ganhao refused to let Derrick in the house and refused to sell the furniture to him.

On what basis may Mr. Ganhao refuse to sell the furniture to Derrick Stone? Identify and explain any relevant legal principles. (3 marks)

What should Alice Applegard have done in order to ensure that Mr. Ganhao would sell the furniture to Derrick Stone? Identify and explain any relevant legal principles. (3 marks)