Case summary: Janesh operated a large farm on which he grew a variety of vegetables for commercial canners. He also grew a smaller quantity for sale to local retailers and wholesalers as fresh produce. On August 5th, Susan Daigle of Daigle Wholesale Foods Ltd. approached Janesh and offered to purchase 5,000 5-kilogram bags of carrots from him at a fixed price per bag. Janesh stated that the price was acceptable to him, but he was uncertain as to whether his crop would be sufficient to make up the 5,000 bags. He told Daigle he could supply 4,000 bags, and that he would be able to tell Daigle Wholesale Foods Ltd. by the next week if the additional 1,000 bags would be available. Daigle nodded approval and left. A few days later, Janesh discovered that crop failures in other parts of the province had pushed carrot prices substantially above the price offered by Daigle Wholesale Foods Ltd. Janesh's crop, however, was abundant, and he discovered that he had 6,000 bags when the crop was harvested. At the end of the week, Susan Daigle called to determine if Janesh could supply her with 5,000 bags, or only 4,000. Janesh refused to supply Daigle Wholesale Foods Ltd. with any carrots and informed her that it was his intention to sell the crop elsewhere.

Questions

Discuss the negotiations between the parties and determine the rights (if any) and liabilities (if any) of the parties. Assume that Daigle Wholesale Foods Ltd. brought an action against Janesh.

Discuss the nature of the action and render a decision after including your reasoning. You are encouraged but not required to cite case law where applicable to solidify your argument.