a) Discuss and explain the difference between an invitation to treat and an offer with decided cases.

b) Mr Lau owns a boat. On 18 May, he wrote to Mr Wen. In his letter, he said ‘I am interested in selling my boat for $350,000. The terms are: a deposit of $170,000 upon acceptance and the remaining HK$180,000 to be paid in cash within three days of acceptance. Let me have your acceptance by 23 May.’

Mr Wen received the letter on 19 May. He wrote to Mr Lau on the same day, enclosing a cheque for $170,000. In the letter, he said ‘I accept your offer. I expect you will leave the installed radar system in the boat and change the seats before handing it over to me.’ Mr Lau received the letter on 22 May.

Mr Wen went to Mr Lau’s backyard on 24 May with $180,000 cash and demanded the boat.

Mr Lau refused to give it to him because there was no contract between them.

Required:

Analyse, with reference to suitable legal cases, whether there is a valid contract between Mr Lau and Mr Wen.