Phil has recently opened his new business, Women's Wear Luxury (WWL), located in Wollongong Crown Mall. He imports all expensive garments from London. As a promotional measure, Phil has recently published some colourful catalogues and distributed them by placing in letterboxes of houses and businesses in local suburbs around Wollongong. Beauty, a business person, was excited after finding a dark red winter suit included in the latest catalogue of WWL in her letterbox late last Saturday. She becomes desperate to buy one of those suits from WWL. The sale price of the suit is $700 as quoted in the catalogue, and Beauty thinks the price is reasonable. However, she was due to travel to Melbourne on a business trip for three days departing in the early morning of Sunday, the following day after she found the catalogue. So, to make sure that she gets her chosen suit, she writes a letter to Lovely (WWL manager), with a cheque of $700 asking the manager to send her the dress by a courier mail to her business address. Beauty highlighted in her letter that she must get one and dropped the letter into a post box in the morning on her way to Sydney Airport. Beauty arrived at Melbourne around midday on Sunday and went to a prominent shopping mall there with James, her ex-boyfriend, in the afternoon, where she found exactly the same suit for only $400. Beauty then changed her mind and immediately called the manager of WWL and asked her (manager) to disregard the letter which is yet to be delivered to the shop and requested to return the cheque of $700 to her work address. Lovely is reluctant to return the cheque claiming that a binding contract has been formed as soon as Beauty posted the letter with the cheque.

Your task: Advise Beauty whether she has any legally binding obligation to buy the suit from WWL. You must discuss the three essential elements of a valid contract under common law and give reasons for your answer referring to legislation and/or cases, as relevant, to support your arguments. You must follow ILAC in your advice.