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'''Personal Merchants''' only sell items that the owner gives them. You cannot sell any items to him/her, only buy from them. The owner of the merchant sets the price that the merchant sells it for.
If you '''dismiss ''' the merchant from his post by selecting the option "Dismiss", you will still hold the contract to place him again, you will not lose the merchant.
When '''placing''' the merchant, he/she must be inside a finished building with no other creature, such as a Trader. You may buy from a merchant through a window.